Yamaha And Hero Motors Collaborate To Enter The Wheel Drive Market

According to foreign media reports, Yamaha and Hero Motors will invest 2.5 million euros (2.9 million US dollars) to set up a joint venture to manufacture wheel drives for electric bicycles. The cooperation will be formally established at the end of November, and Hero will hold 90 percent of the shares.

Hero Motors owns Hero Cycles, India's largest bicycle manufacturer. The unnamed company will be located in the Ludhiana district of Punjab, India.

According to Yamaha's announcement, wheel hub drives account for about half of the European electric bicycle market. The company said that as demand for these drive units is expected to increase, Yamaha seeks to reach an agreement with Hero to expand its product portfolio beyond mid-drive motors. Yamaha currently offers proprietary central-mounted drive units.