Hero MotoCorp and Magneti Marelli S.p.A deal

Hero MotoCorp continues to collaborate with foreign companies on R&D and last week at a press conference in New Delhi, the world's largest manufacturer of two-wheelers signed a JV agreement with Italian company Magneti Marelli S.p.A. aimed at the production of powertrain systems for the two-wheeler market.

According to this agreement, Hero MotoCorp will hold a 60% share in the Joint Venture, with the remaining 40% being held by Magneti Marelli. Magneti Marelli is also part of Fiat Spa.

Although the construction of the JV's production plant is planned for 2015, at a location in India, the JV will nevertheless be operational immediately, as during this initial phase activities will focus on the technological aspect, with the two companies starting to cooperate in the design and development of the first solutions and applications for motorcycles.

The Joint Venture will be aimed mainly at the Indian market, and its solutions will be made available both to the two-wheeler production of Hero, and to the entire two-wheeler market in the country.

Magneti Marelli designs and produces advanced systems and components for the automotive industry. Its business areas include Electronic Systems, Lighting; Powertrain, Suspension Systems and Shock Absorbers, Exhaust Systems, Aftermarket Parts & Services, Plastic Components and Modules, Motorsport.