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Hero Motors and Italian motorcycle giant Aprilia have decided to come together to manufacture and market Aprilia scooters and motoscooters in India. The stylish and technological advanced range of non-geared scooters will be produced at a new manufacturing line to be set up at Hero Motors existing facility in Ghaziabad at an investment of Rs 135 crore. The facility would produce 4.5 lakh vehicles a year.
Another significant new development suggests that Aprilia is all set to take up a 20 per cent stake in Hero Motors for an estimated Rs 100 crore. Although the details are yet to be finalised, the deal would help Hero Motors generate Rs 80-100 crore for future developments.
The first co-branded non-geared 75cc 4-stroke scooter will be launched in the last quarter of 2004, Pankaj Munjal, managing director, Hero Motors said in a press conference held in New Delhi. With the launch of the first scooters, one 2-stroke and one 4-stroke in the 75cc and 92cc segment, Hero Motors would phase out their 2-stroke step-thrus. As per the agreement, Hero Motors will source vehicle designs for non-geared scooters for which it has identified three new segments, these being young females (92cc), young males and the family segment (125cc). The 125cc offerings would have water-cooled engines, Pankaj Munjal informed. Yet another 177cc class of motoscooters would be exclusively for exports. Although there are no immediate plans to rope in high-performance bikes, Pankaj Munjal said they could import these from Italy later and could be priced anywhere between Rs 1.5 and Rs 3 lakh.
The renewable partnership would extend for a period of eight years. Accordingly, Aprilia, Europe's second largest producer of motorcycles and scooters would provide technological knowhow to Hero Motors, which would primarily include design. The new offerings would be a fusion of scooter economy and efficiency and style of bikes. In return for Aprilia's technical assistance and brand name, Hero Motors will pay a royalty per vehicle to the Italian major. The agreement would yield a yearly turnover of Rs 350 crore approximately.
Another significant new development suggests that Aprilia is all set to take up a 20 per cent stake in Hero Motors for an estimated Rs 100 crore. Although the details are yet to be finalised, the deal would help Hero Motors generate Rs 80-100 crore for future developments.
The first co-branded non-geared 75cc 4-stroke scooter will be launched in the last quarter of 2004, Pankaj Munjal, managing director, Hero Motors said in a press conference held in New Delhi. With the launch of the first scooters, one 2-stroke and one 4-stroke in the 75cc and 92cc segment, Hero Motors would phase out their 2-stroke step-thrus. As per the agreement, Hero Motors will source vehicle designs for non-geared scooters for which it has identified three new segments, these being young females (92cc), young males and the family segment (125cc). The 125cc offerings would have water-cooled engines, Pankaj Munjal informed. Yet another 177cc class of motoscooters would be exclusively for exports. Although there are no immediate plans to rope in high-performance bikes, Pankaj Munjal said they could import these from Italy later and could be priced anywhere between Rs 1.5 and Rs 3 lakh.
The renewable partnership would extend for a period of eight years. Accordingly, Aprilia, Europe's second largest producer of motorcycles and scooters would provide technological knowhow to Hero Motors, which would primarily include design. The new offerings would be a fusion of scooter economy and efficiency and style of bikes. In return for Aprilia's technical assistance and brand name, Hero Motors will pay a royalty per vehicle to the Italian major. The agreement would yield a yearly turnover of Rs 350 crore approximately.
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