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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 Moto-Corp 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

The inevitable is happening finally.

But its good to hear that at least Hero is trying.

Considering what we discussed on the other thread, do they have any other option? AVL was actually the easy way out rather than buying all those companies..

Building an R&D team ground up will take time. Both for Bajaj and TVS it has taken them more than a decade to reach their current level of capabilities.

It will take time for Hero too. But at least they seem to have started the process.

This is fantastic news. We can expect some truly pioneering products from Hero rather than the old sticker and paint jobs. If the Ducati acquisition rumor is also true then Hero might have more technology on its hands than they would have imagined. Buell, Ducati and AVL. Nice start there Hero.

I think BM Munjal is on xbhp reading up the BAL/HMSI/HMC discussions.

AVL has previously helped Royal Enfield in developing Machismo 350/500 and first lot Thunderbird engine. Let's see the outcome here.

Good to know that Hero is trying out all it can to stay afloat once 2014 comes in. Looking at the article it seems the tie up is mainly to find replacement engines for its current line up like splendour and passion (though it might spawn out other vehicle too).

But the big question is will AVL be successful in comming out with a successor to the legendary Honda 100cc engine which is know for its refinement, fuel efficiency, reliability? Will the consumer accept it?

In my personal opinion i really doubt it. AVL stint in India in two wheelers is nothing to write home about. Their joint development product with TVS which in itself has a great R&D could not be successful with flame. With all the great R&D for so many years, Bajaj and TVS could not come out with a competetor to this engine, so i dont think AVL can do it.

But lets all hope for the best.

Maybe reliable and refined agreed, but I think AVL can actually make a better engine than Honda's age old 100cc when it comes to mileage. Their 3 valve 2 spark engine in Flame was a good example that AVL can create 125cc bikes giving 80 kmpl highway mileage.

I think the Consumer will accept it too. Believe me, we might be discussing it but the common man knows nothing but trusts the brand of "Hero". Despite Honda's name withdrawn, Hero's sales are hardly affected.

Nobody will really know what's inside (even when engines are new). Most of the consumers are motivated by adverts and first impressions.

This AVL/ EBR/ Ducati interaction will surely remove the "technical stagnancy" that Hero was suffering from and being critisized for, all these years.

it will be really very exciting to see wat come's up........... but good to see the efforts they are putting in........ keep it up.........

apart from the refinement flame's engine is good at returning good fuel-efficiency and performance.3 valve 2 spark was good tech until bajaj accused it of copying,making flame a market dud.
back to the topic avl is renowned private firm,they are good at what they do,although beating the legendary 100 cc honda engine which deserves technical hall of fame in terms of reliability is a uphill task.having used passion for 3 years i am seriously looking forward to more power output from that 100 cc engine,fe is already good ,if they can improve it further then it will be icing on the cake.
btw i didn't know hmc had r&d.

Bajaj had all rights to case over TVS since they hold the Indian Patent for DTSi (Twin Spark Ignition). TVS lost at Chennai court but it was a surprise how they won in Supreme court.

Boss hero honda was known and sold for its refinement on a mini motor. If they lose on refinement they can't sell the bikes even if it gives so much mileage. In that segment Bajaj bikes very high mileage, higher than hero bikes still they lag Hero. Just becz of refinement and long term reliability. I bet AVL wont be able to make more FE bikes than Bajaj. Bajaj has record of FE in many countries (read: India, Indonesia)

AFAIK AVL is very good when in comes to engine(esp diesel) in cars but nothing special in bikes. With AVL and Honda stickers gone, it would be a next to impossible task for Hero to beat specialized Honda/(Bajaj next Gen) bikes.

Hero won't have correct pricing either. I say why not go for high-tech Bajaj next-gen or Honda bikes rather than wasting money on Hero. Hero is just good at selling outdated Honda engines. Matching Bajaj next-gen bikes is just an impossible day-dream for Hero.