Leading automotive component manufacturer Hero Motors Company (HMC) has secured a strategic stake in United Kingdom-based transmission design technology company Hewland Engineering.
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 OEMs across North America, Europe and India.
The acquisition made for an undisclosed sum 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 1 suppliers.
Pankaj M Munjal, chairman and MD, Hero Motors Company said: “We are very proud to announce a strategic equity investment in Hewland, which has over 60 years’ 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. 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 1 suppliers. 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 has provided EV transmission solutions to many OEM customers over the past number of years and is seeing significant growth. With its vast motorsport experience, Hewland is able to provide innovative transmission designs which are manufactured in compressed lead times supporting customers requirements for expedited development programs to meet the surging EV demand for technology.
In addition, Hewland has been able to transfer technologies and manufacturing techniques (such as highly efficient transmission designs and component light-weighting) developed for motorsport to provide significant benefit to its OEM customers in a variety of market sectors.
William Hewland, chairman, Hewland Engineering, added: “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. 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.”
The new investment comes as Hero Motors continues to record strong growth in the first half of financial-year 2021, driven by major export projects and strong volume growth in its domestic market. 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.