Hero MotoCorp to make its own engines, teams up with engine developer AVL

EW DELHI: Fixing its technology deficit after separating from Japanese partner Honda, BM Munjal-owned Hero MotoCorp, India's largest two-wheeler maker by volumes, is building in-house capabilities to make its own engines by teaming up with the world's largest privately-owned engine developer, AVL of Austria.

Close on the heels of forging a "strategic partnership" with Erik Buel Racing (EBR) of the US for high-end technology, Hero MotoCorp has now roped in AVL to build its "internal capabilities" for new engine development.

"We have tied up with AVL to develop our in-house capabilities in engine technologies. A team from our R&D division is already in Austria. Our team is also working in close coordination with AVL ITC ( India Technical Centre) based in Gurgaon. The team is working on a few options across motorcycles and scooters," Pawan Munjal, MD & CEO Hero MotoCorp, told ET.

Its technology tie-up with Austria-based AVL will allow Hero MotoCorp to develop technology for its bread-and-butter 100cc bikes such as Splendor and Passion.

Looking beyond the Conventional

The tie-up will also help it take the 150cc CBZ and Hunk to the next level to meet intensified competition from rivals such as Honda and Bajaj Auto in this high-margin segment.

Also, this new in-house capability would allow Hero to develop engines independently of its estranged partner Honda Motor Company, which currently breeds its entire lineup of bikes and scooters that catapulted it to become the world's largest two-wheeler maker by sales. The erstwhile partners now compete in the 11-million-strong Indian two-wheeler market.

"We would be developing engines of all sizes to make new products and also refurbish the existing product lines," Munjal added, specifying that the arrangement with AVL would go beyond making the current portfolio of 100-230cc engines.