Hero MotoCorp, India’s top two-wheeler manufacturer, has entered a technological collaboration with Magneti Marelli, the Italian bigwig, for development of fuel injection systems, which will be used in models launched in the future. At present, only two models in Hero MotoCorp’s portfolio, Glamour and Karizma, are available with fuel injection technology. Sources claim that Hero MotoCorp has taken this step as a consequence of authorities releasing stricter emission norms, thereby rendering old Honda engines obsolete.
A highly trust brand among Indians, Hero MotoCorp is known to produce excellent two-wheelers that are hugely reliable and come with easy maintenance. One of the main reasons for their success has been the Honda engines fitted in them, which are efficient and powerful. However, industry experts feel that no matter how efficient these engines are, it is time for them to go out and make way for new technology. Another reason why Hero MotoCorp has been persistent with these Honda engines is low production cost, which helps them to aggressively price their models and keep more margins for profit. Hero MotoCorp, also, does not spend anything on research and development since this system is working perfectly fine for them.
Nevertheless, norms are changing nowadays and with new emission regulations coming in, the exit of these Honda engines is inevitable. Reports suggest that the BS4 emission norm is going to be applied to two-wheelers as well, which will automatically disqualify these Honda engines. This is going to be a major development for Hero MotoCorp and adjustment of strategies is going to be slightly tricky. For this particular reason, the firm is trying to search for a middle path and the partnership with Magneti Marelli for the development of fuel injection systems is going to be crucial. One benefit that Hero MotoCorp will draw by adding these FI systems is the eligibility of its products in international markets, where it does not operate at present.
