Signalling the coming of age of Indian auto component makers, Hero Motors has bagged a contract to become the sole international supplier of gearboxes for BMW’s motorcycles for both domestic and global markets. Gearboxes are one of the most critical parts in an automobile and involve high-end engineering.
Hero Motors is part of the $4.5-billion Hero Group.
Pankaj Munjal, managing director, Hero Motors, said, “We have developed the gearbox ourselves. Usually, components such as engines and transmissions are made by the company itself, as they involve advanced technology. We have achieved the expertise. BMW Motorrad will source gearboxes from us for products it sells globally.” The agreement would be for five-eight years depending on the transmissions sourced for different products by BMW Motorrad.
The deal was closed on Tuesday. “That Europe is the best place for sourcing automobile components is not necessarily correct. The landscape is changing. Our transmission business, for one, has been growing over 70 per cent a year for the last few years”, said Munjal.
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