Let’s play a game for a minute. Who is the third largest motorcycle manufacturer in the world? One of the Big Four maybe (Honda, Kawasaki, Suzuki, & Yamaha), that is after all what their name implies, right? Maybe you think it is a European manufacturer, like BMW or Triumph? If these were any of your answers, thank you for playing, but please try again.
Seeing its 27-year-long joint-venture with Honda come to an end last year, Hero MotoCorp has been picking up technology partners with an intense pace. With its 2014 rapidly approaching, Hero already counts Erik Buell Racing as one of its technical partners (as well as a potential acquisition target), and now Hero has now announced that the Austrian engineering design firm AVL will help the Indian company with a new range of larger-dipslacement motorcycle motors.
The move towards larger displacement engines is surely a sign that Hero MotoCorp has its eye on the export market, as it already accounts one of every two motorcycles sold in India. Surely seeing the work that rival Bajaj has done with KTM and the Duke series of motorcycle, we can expect Hero to go after a similar position in Europe, with even larger models for the American market.
While we have been expecting Erik Buell Racing to join forces with a larger company at some point this year, today it comes as a bit of surprise to learn that EBR has partnered with Hero MotoCorp. The deal sees Hero becoming the title sponsor for two teams in the AMA Pro Racing National Guard Superbikes Championship — Team Hero and AMSOIL Hero, while Erik Buell Racing will give Hero design and technology inputs for bikes destined for the Indian market.
In practicality, this partnership would seem to suggest that Erik Buell Racing will help Hero MotoCorp, a company recently freed/dumped from its partnership with Honda, build sporty two-wheelers for the Indian motorcycle market, while the cash-infused Indian manufacturer will help the boutique American sport bike maker continue to go racing in the United States. This news also puts Danny Eslick on the Team Hero EBR 1190RS for the 2012 season, while Geoff May will continue with the AMSOIL Hero EBR 1190RS. Thanks for the tip Kevin!
Hero Motors has just inked a deal with BMW that sees the Indian motorcycle manufacturer building gearboxes for the Bavarian brand not only in the Indian market, but also worldwide. The five to eight year deal will see Hero building gearboxes for BMW on a variety of motorcycles, and we presume scooters, though which models exactly remains to be seen.
The news is a boon for the Indian motorcycle manufacturing industry, as it adds further credence to the country’s technical prowess. The deal is also beneficial for BMW as well, as the German company will not only be able to build its bikes for cheaper, but we’re sure BMW is gaining a foothold on the lucrative Indian market from the transaction as well. BMW currently imports fully-built motorcycles into India, but with this news, we see that business practice changing in the near future.
We know it’s a cryptic headline, but there’s a
big HUGE move happening today in India as far as motorcycles are concerned, and we couldn’t help being overly dramatic. Holding a 26% stake in Hero Honda, Honda announced that it will be selling its position in Indian joint-venture, the world’s largest two-wheel manufacturer, to the Hero Group’s founders, the Munjal family, and various investment funds.
Honda in turn will be pumping its resources into its own fully-owned subsidiary in India called Honda Motorcycles and Scooters India (HMSI). Buying its stock back at a discounted rate, the Honda will be selling the stock to Hero Honda for $1.2 billion, presumably in exchange for a larger percentage of the company’s early revenue (Honda currently takes home 2.5% of Hero Honda’s yearly revenue).