Hero Motors buys stake in UK’s design tech firm Hewland Engineering

NEW DELHI: Hero Motors Company (HMC) on Monday said it is securing a strategic stake in UK’s transmission design technology company Hewland Engineering Ltd. The acquisition will enable Hero Motors to create a competitive single source entity to design and manufacture high-quality transmission products, particularly in the emerging EV segment, to original equipment manufacturers (OEMs) across North America, Europe and India, said the auto component maker in a statement.

The acquisition made for an undisclosed amount will also enable Hewland to further strengthen its product and service portfolio – particularly in the area of transmissions for electrified passenger cars — and aggressively pursue opportunities among global OEMs and tier-I suppliers. “Hewland has over 60 years of rich heritage and experience at the top levels of global motorsport and OEM component supply. This investment represents a significant strategic inflection point for us in the transmission product segment,” said HMC chairman and managing director, Pankaj M Munjal.

He added the company is continuing to invest in the UK as it is a significant hub for EV and cycle-focused activities in particular, as well as for Hewland’s established motorsport customer base. This investment comes as Hero Motors continues to record robust growth in the first half of financial-year 2021, driven by major export projects and strong volume growth in its domestic market, Munjal said.

As part of its three-year roadmap shared earlier this year, the group plans to treble international revenues by augmenting its R&D and business-development activities within the European Union, he noted. 
Hewland Engineering Chairman William Hewland said that collaboration will help enhance its presence in the EV market.