India's largest motorcycle firm Hero Motors said on Wednesday that it has tied up with Europe's second largest producer of motorcycles and scooters, Aprilia of Italy, for manufacturing scooters in the country from the next year.
Hero Motors, which is investing Rs 135 crore (Rs 1.35 billion) in setting up a manufacturing line at its Ghaziabad plant near Delhi, will launch its first co-branded non-geared scooter in the fourth quarter of 2004, Hero Motors managing director Pankaj Munjal told a news conference.
The company will source vehicle design for the non-geared scooters, which, it says, will be a fusion of scooter economy and efficiency and style of bikes, from Aprilia. These scooters will be launched in 75 cc, 92 cc (targeting the young female market), 125 cc (targeting family and young male market) and 177 cc category (exclusively for the export market).
Refusing to divulge the price of the latest offering from the Rs 7800 crore (Rs 78-billion) Hero Group, Munjal said the vehicle would be priced higher than the existing competitors.
"If you want the best of technology, comfort, style and performance, you have to pay a premium," he said. The premium could be about 10 per cent over the competing models.
Aprilia will not have any equity in the venture and will only be paid an unspecified royalty per vehicle for the technology and design.
About 20-30 per cent of the vehicles manufactured at Hero Motors' new 450,000 units-a-year assembly line would be exported.