Hero-Yamaha JV Firm Sets up Electric Drive Unit Manufacturing Facility in Ludhiana

With an aim to make electric drive units in India, Hero Motors and Yamaha Motors-led HYM Drive Systems has recently held a ground-breaking ceremony for its manufacturing facility at Hero E-Cycle Valley in Ludhiana.

HYM Drive Systems is a Joint Venture (JV) between Hero Motors and Japanese two-wheeler manufacturer Yamaha Motors Company.

The two companies have entered into an agreement in October last year to create a Global E-Cycle (Electric) Drive Unit company.

The company said that this JV is the next step in the strategic alliance forged between Hero and Yamaha in September 2019 to work together in the E-Cycle product segment.

During the occasion, Pankaj Munjal, Chairman and Managing Director of Hero Motors Company (HMC) Group, said “this manufacturing facility is a part of our Joint strategy with Yamaha to localize electric drive units in India to cater to domestic as well as global e-cycle markets.”

“HMC envisions India to be a global manufacturing hub for E-Cycles and the drive systems. The EU E-bicycle market is growing by 25% CAGR and E-Bike Market globally is expected to reach $49 Bn by 2028, probably the fastest across consumer product categories, and Hero is now well-poised to acquire a major chunk of this with key elements of the value chain in place – R&D, Manufacturing, Brands, Distribution and After-Sales Service. This joint venture is a major component of our ambition to be the first fully integrated player globally in the E-Cycles segment and adds strength to our initiatives like setting up of a world-class industrial park in Hi-Tech Cycle Valley, Punjab,” he added.

Currently, the 100-acre Hero E-Cycle Valley manufactures cycles and e-cycles for global cycle Original Equipment Manufacturers (OEMs) and will start manufacturing cycle components like Alloy Rim, Aluminum Frames, Handlebars, etc.

Also, the new facility is expected to commence production by November 2022 with a capacity of 1 million drive units in phases.

Moreover, the product manufactured could be used in both Hero and Yamaha branded e-cycles and sold to the global market through these companies’ OEM networks.

Hero Motors is part of the HMC Group, a diversified conglomerate with interests in automotive components, e-mobility, cycles, real estate and premium retail. HMC Group has a $1.2bn asset base and employs over 7,500 people across the globe. 

HMC’s bicycles arm has a manufacturing capacity of 6 million bicycles per year and a network of plants located in Punjab's Ludhiana, UP's Ghaziabad, and Bihar's Bihta. It also has a state-of-the-art manufacturing facility in Sri Lanka as well as a Design Centre in the UK.

It also owns UK-based Insync, Germany-based HNF, and Firefox Bikes in India. The group has recently expanded its manufacturing operations with the setup of a world-class industrial park in Hi-Tech Cycle Valley, Punjab which will add 4 million units capacity, including 0.5 million units of E-Cycles.