Hero MotoCorp plans to buy stock in EBR
February 28, 2012
Filed under News
Less than a week after announcing its partnership with Erik Buell Racing, India-based Hero MotoCorp revealed plans to buy a minority stake in EBR.
Hero MotoCorp MD and CEO Pawan Munjal told The Economic Times that his company plans to soon invest an undisclosed amount in EBR, giving it more of a say in EBR and the partnership between the two companies.
"We have a flexible free-flowing pact with EBR, which would be developed into a equity partnership," Munjal told the newspaper.
The investment will also give Hero the opportunity to expand globally. The OEM currently holds 56 percent of the motorcycle market share in India, selling more than 6 million units each year. However, while in its 27-year partnership with Honda, which dissolved last year, Hero was prohibited from expanding overseas. More than 98 percent of Hero's sales are within India.
"As we turn global, which is our long cherished aim, EBR is a strategic fit that will help us gain traction in overseas markets," Munjal told The Economic Times.
To read the story that Powersports Business ran last week about the new partnership between Hero and EBR, click here.