Yamaha Motor has has signed an agreement with Hero Motors, which owns Hero Cycles, India’s largest bicycle manufacturer, to establish a joint venture company for the manufacture of hub-mounted drive units for electrically power-assisted bicycles (e-Bikes).

The joint venture is scheduled to be established by the end of this November, with Yamaha Motor holding a 10% stake and Hero Motors holding the remaining 90%.

Today, Europe is the largest market for e-bikes and about half of the market’s offerings use hub-mounted drive units that house the electric motor in the center of the drive wheel. As the global market for e-bikes continues to grow, Yamaha expects the prominence of these hub-mounted drive units to rise accordingly and signed the agreement to establish this joint venture with that in mind.

Yamaha currently offers proprietary centre-mount drive units, which are set in the middle of the bicycle chassis near the pedals. By adding the hub-mounted drive units manufactured through this joint venture to its portfolio, Yamaha looks to raise the overall strength and capabilities of its e-Bike business and thereby secure future business growth.