Hero Motors to Build Gearboxes for BMW Worldwide

05/03/2011 @ 12:52 pm, by Jensen Beeler9 COMMENTS

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 have developed the gearbox ourselves,” said Hero Motors Managing Director Pankaj Munjal. “Usually, components such as engines and transmissions are made by the company itself, as they involve advanced technology. We have achieved the expertise. BMW Motorrad will source gearboxes from us for products it sells globally.”

That Europe is the best place for sourcing automobile components is not necessarily correct. The landscape is changing. Our transmission business, for one, has been growing over 70 per cent a year for the last few years,” he continued.

This isn’t the first deal like this for Hero, as the Indian company already does about $200 million in business making parts for Canadian outfit Bombardier Recreational Products and other components for BMW. However the contract to build gearboxes for motorcycles is a signal that more skilled and technical products are being sourced from India and abroad.

Source: BSMotoring via IndianCarsBikes

  • George Mastovich

    Guys and gals,

    Remember, when you write, that there is a motorcycle called Indian and the company and name has just been purchased by Polaris. It can get very confusing for us Olde Phartes :)).

  • Other Sean

    I know it probably won’t dent BMW sales, but not all of the pipe and sleeper beemer boys are happy about their bikes being built in India. Parts of the G450X and maybe some other bikes are assembled by Kymco, if my memory serves correctly. And they weren’t really advertising that info.
    Again, probably a moot point, but thought I’d mention it.

  • Andrew

    Indian made gearboxes? They might as well make them out of clay while they are at it… Indians have some brilliant engineers and software people, but their metallurgy and quality control leave much to be desired. Knowing such critical parts of the bike come from India would certainly affect my purchasing decision, especially when it comes to BMW who charge premium prices for their allegedly premium product. ‘Premium’ and Made in India’ just do not go together in my mind.

  • MikeD

    New BMW Strategy:

    In order to divert ALL the bad mouthing they have got all these years from self grenading Final Drive Units, Engine dying when u come to a stop for no reason(I-4 1300 Bikes), Rods sticking out of the cases and locked up trannies while under way(I4-1200 KR-KS Bikes), monthly software updates(whats this, Windows Vista ?) they will be manufacturing their trannies on India.

    Another thing taunting-poking u on the back of your head wondering about when it will quit on u, where will u become stranded and how much it will cost u to have it fixed.

    PUN INTENDED. Flame Suit On. LoL.

  • Damo

    Guess I’ll be going with that RC8R instead of the S1000RR…

  • Jim

    Getrag, a German company, has manufactured BMW MC transmissions for years and before the problems with final drives the most complained about component on BMW’s was the transmission. Clunky, hard to shift, noisy, difficult to find neutral, many complaints. Its difficult to imagine that Hero will be worse.

  • Donnie

    As long as this doesn’t end up the way the front forks on the 2001 – 2002 F650GS did, I imagine things will turn out well for them.

  • Nikhil Shetye

    As an Indian I am rightfully happy about the deal but a bit concerned about the misinformed people regarding build quality in India….admitted that we did lack the build quality earlier cos we were obviously a poor nation due to the looting and plundering by the british for so many years, considering the fact that most international manufacturers source parts from India and that includes Ducati, Mv Augusta, Mercedes,Fiat Jaguar etc,I can assure you the build quality would be as per the best in Industry for a far less price…..Please readers of this site change your perception about India

  • MikeD

    By the way, i was ripping on BMW, not India, want to make that clear.
    I don’t think one country is dirt and another one gold, we all have our own ups and downs…specially mine (USA).
    Im pretty sure with the proper means and training any country and human being can achieve great results and create high quality products.