Munjal: On speed trail

New Delhi, April 22: Moped maker Hero Motors today signed a technology agreement with Austrian firm Bombardier-Rotax for producing four-stroke scooters powered by 125-cc engines.

Under the agreement, Bombardier-Rotax, a unit of Canada-based Bombardier Recreational Products Inc, will also outsource components from Hero Motors.

“With the support of Bombardier-Rotax, Hero Motors will expand its product line-up to ensure sustained growth,” Pankaj Munjal, managing director of Hero Motors, told reporters.

The two-wheeler maker, owned by the Munjal family which controls Hero Honda Motors had also tied up with Italy’s Aprilia to manufacture motoscooters — hybrids of scooters and motorbikes — in the 75-125-cc range.

The Italian firm will also buy back around 20-30 per cent of output for sale in Europe and other Asian markets which would help lower its production costs and improve competitiveness.

“We are going to cater to the European market jointly with Rotax and enter step-by-step. We have got the engines ready...there will be country specific changes but the platform will be the same,” said Munjal.

Hero, spun off from group firm Majestic Auto, also plans to export vehicle parts worth around $90 million for the next five years.

Asked if Bombardier (which also makes aircraft engines) plans to set-up a manufacturing base here, Yves Leduc, vice-president of Bombardier-Rotax said: “We will look for other product opportunities in the future but not in the short run.”

“The manufacture of aircraft engines is a low-volume and highly specialised product. This will come only after we set up a supply base,” Leduc explained.

Hero, which is eying a 10 per cent share of the domestic scooter market on the back of these models, has posted operational profits in 2003-04.

The company, which manufactures two-stroke moped Hero Puch and four-stroke step-through Sting, would manufacture 92cc scooter Sonic this year at its Ghaziabad (Uttar Pradesh) plant, Munjal said.

The Sonic will be powered by the Hero Motors’ engine while the rest 125cc and 175cc engines will be fitted with engines from Bombardier-Rotex engines.