Hero Motors, an auto components manufacturer has bought strategic stake in UK-based company called Hewland Engineering. The British company specialises in transmission design technology.
The amount paid for acquisition and the percentage of acquisition has not been disclosed yet
Hero Motors Company (HMC), an auto components manufacturer, revealed that it has acquired strategic stake in Hewland Engineering, a UK based company which specialises in transmission design technology. The sum of acquisition was undisclosed. HMC said that the acquisition of stake in Hewland Engineering will enable the company to create a competitive, single-source entity to make high-quality transmission productions, especially for the electric vehicles (EV) segment for original equipment manufacturers (OEM) across North America, Europe and India. Plus, the move also gives HMC access to Hewland’s customer base in UK and also helps it to strengthen its product and service portfolio.
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Commenting on the acquisition, HMC Chairman and Managing Director Pankaj M Munjal said: “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 One suppliers.”
Hewland has an established motorsport customer base in UK and the company’s strength also lies in making transmission designs for electrified passenger cars. Hero’s stake acquisition also opens up opportunities to cater to global OEMs and other tier I suppliers.
Munjal further said: “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.”
William Hewland, Chairman, Hewland Engineering, said that the company has built significant strengths in transmission design and manufacturing, structural and gear-train analysis and efficiency modelling capabilities for internal combustion engine cars and electrified vehicles over the last 10 years.
“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,” he added.
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