Automotive component manufacturer Hero Motors on Thursday said it has inked a joint venture pact with Japan's Yamaha Motor Co to set up a manufacturing unit to produce e-cycle drive motors.

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The boards of both the companies have approved the transaction under which a manufacturing unit will be set up in India to manufacture e-cycle drive motors for the global markets, Hero Motors said in a statement.

 

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The joint venture is the next step in the strategic alliance forged between Hero and Yamaha in September 2019 to work together in the e-cycle segment.

The JV facility would come up in Punjab and start production by November 2022. The plant would have a total installed production capacity of one million units.

"Our combined strengths - Hero's expertise in value-focused manufacturing and Yamaha's technical expertise, global reach and access to future technology - are a potent recipe for success," Hero Motors Company (HMC) Group Chairman & Managing Director Pankaj Munjal said.