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Hero Motors Company (HMC) on Monday said it is securing a strategic stake in UK’s transmission design technology company Hewland Engineering Ltd.
The acquisition will enable Hero Motors to create a competitive single source entity to design and manufacture high-quality transmission products, particularly in the emerging EV segment, to original equipment manufacturers (OEMs) across North America, Europe and India, it said in a statement.
The acquisition made for an undisclosed sum will also enable Hewland to further strengthen its product and service portfolio – particularly in the area of transmissions for electrified passenger cars – and aggressively pursue opportunities among global OEMs and tier-I suppliers.
“Hewland has over 60 years of rich heritage and experience at the top levels of global motorsport and OEM component supply. This investment represents a significant strategic inflection point for us in the transmission product segment,” Pankaj M Munjal, Chairman and Managing Director at HMC, said.
He said the company is continuing to invest in the UK as it is a significant hub for its EV and cycle-focused activities in particular, as well as for Hewland’s established motorsport customer base.
This investment comes as Hero Motors continues to record strong growth in the first half of financial-year 2021, driven by major export projects and strong volume growth in its domestic market, Munjal said.
As part of its three-year roadmap shared earlier this year, the group plans to treble international revenues by augmenting its R&D and business-development activities within the European Union, the company added.
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