The Rs 7,800-crore Hero Motors Group plans to introduce three new models with the technical know-how from Italian two-wheeler giant Aprilia Spa.
The models will be introduced in the premium segment in the domestic market, Mr Pankaj Munjal told media here on Friday.
“We propose to introduce co-branded new models in the Indian market by the end of the current year,” Mr Munjal said.
Both the companies have already entered into a technical and marketing tie-up and a separate manufacturing unit is coming up near Delhi, he added.
Aprilia is the second largest manufacturer of scooters and motorcycles in Europe with an annual turnover of over 800 million euro.
As per the agreement, over 50 per cent of the capacity in the new factory will be exported to Aprilia in their brand besides engines.
“We have signed for 50 per cent exports from the new facility,” Mr Munjal said.
The proposed new facility near Delhi will have a capacity of 4.5 lakh vehicles per annum besides five lakh auto engines.
The Hero group is investing Rs 150 crore in the project, which will be funded through debt and equity mode, Mr Munjal said.
Mr Munjal was here in connection with the launch of Hero Sting, an internationally stylised range of step-thru bikes.
The company plans to introduce three more models to complete the series by the end of August 2004, he added. While the company has targeted to market about 50,000 to 70,000 Stings in the full year of operation in the domestic market, it has also targeted to export about 30,000 bikes in the same period.