Hero Motocorp will be acquiring 49.2% stake in one of its technology partner firms; US based Eric Buell Racing (EBR) for USD 25 million.
The first tranche of USD 15 million has already been invested while the remaining would be paid over the next nine months. The move marks a clear attempt by the country's largest two-wheeler maker to increase the focus on high-end premium bikes - a segment currently dominated by its Pune-based rival firm Bajaj Auto.
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Pawan Munjal, MD& CEO of Hero MotoCorp told reporters that post the stake acquisition, the company would get access to the US markets. "This relationship would also get extended into selling and marketing the products of both EBR as well as Hero MotoCorp, in the western market," he said.
He further added, "I am not looking at this partnership anytime in the near future to help us to get into the target of 1 million exports. That 1 million target is going to be achieved through our current products and some of the new products that we are building currently."