Hero MotoCorp is in talks with Fiat’s subsidiary, Magneti Marelli for a fuel management system that will help its two-wheelers become more fuel efficient in the long run as well as keep up to date with the latest technologies. Magneti Marelli is an Italian company that deals with development and manufacturing of systems, modules and high-technology components for the automotive industry.
The joint-venture is likely to take place by the year end and there is a possibility Hero MotoCorp to hold majority stake in this JV. Hero MotoCorp’s products upto 150cc segment are known to be very fuel efficient. But with this new fuel-management system, the company wants to up its USP that will help them get an edge over their competitors. The JV will also help Hero MotoCorp deal with emission norms across the world and enter new markets easily. As per the Livemint source, the scope of tie-up may be increased to other areas such as suspension systems.
Hero MotoCorp is believed to be continuously investing in research and development since it ended its 26 year old JV with Honda. The company recently bought 49.2 per cent stake in Erik Buell Racing for Rs 150 crore after associating with them for more than a year.
“We expect the fuel emission norms to get tighter day by day and that will require changes in engines that we are using. This tie-up will help us in making those changes and improving the engine’s efficiency as well.There will be a close coordination between engineers from both the companies on some of the future projects that Hero engineers are working on. The idea is to strengthen the R&D and be self-dependent at the earliest," said a source to LiveMint.