IWATA, Japan (BRAIN) — Yamaha Motor Co. and Hero Motors Limited will invest €2.5 million ($2.9 million) on a joint venture company to manufacture hub-mounted drive units for e-bikes. The partnership will officially take place at the end of the month, with Hero holding a 90% stake.
Hero Motors owns Hero Cycles, India's largest bicycle manufacturer. The as-yet unnamed company will be located in the Ludhiana District in Punjab, India.
According to a Yamaha release, hub-mounted drive units make up about half the European e-bike market. With the demand for these drive units expected to rise, Yamaha sought the agreement with Hero, the company said, expanding its portfolio beyond its mid-drive motors.
Yamaha currently offers proprietary center-mount drive units.
