Auto components maker Hero Motors Company on Monday said it has acquired a strategic stake in UK-based transmission design technology firm, Hewland Engineering for an undisclosed sum.
The acquisition will enable the company to create a competitive single source entity to design and manufacture high-quality transmission products, particularly in the emerging EV segment, to OEMs (original equipment manufacturers) across North America, Europe and India, Hero Motors Company (HMC) said in a statement.
Besides, it will give HMC access to Hewland's established motorsport customer base in the UK, while enabling the latter 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 One suppliers, it added.
Commenting on the acquisition, HMC Chairman and Managing Director Pankaj M Munjal said: "This investment represents a significant strategic inflection point for us in the transmission product segment. By combining Hewland's comprehensive design and analysis capabilities with our ability to support high-volume manufacturing we are strongly positioned to offer full-stream transmission solutions to global OEMs and Tier One suppliers." Munjal further said: "We are continuing to invest in the UK, as it is a significant hub for our EV- and cycle-focused activities in particular, as well as for Hewland's established motorsport customer base." Hewland Engineering Chairman William Hewland said over the last 10 years Hewland has built significant strengths in transmission design and manufacture, full structural and gear-train analysis and efficiency modelling capabilities for internal combustion-engine cars and, increasingly, for electrified vehicles.
"This new collaboration with Hero Motors provides a capital infusion that will help us execute our strategic growth initiatives, as well as enhance our capabilities and presence within the EV market," he added.
Hewland further said, "In close collaboration with Hero Motors we will be a highly competitive single source for full programme delivery - from transmission design through to high-volume manufacture - for customers across North America, Europe and India."