In order to enhance its stronghold in the European e-bike market, Hero Cycles Ltd has now acquired Germany's HNF. This stake was taken in collaboration with IBG Beteiligungsgesellschaft Sachsen-Anhalt mbH, a German investment trust. The new joint venture which has been formed between HNF and Hero Cycles is going to aim at emerging as a supplier in the e-bike market of Europe. Hero Cycles, which currently stands as the largest bike maker in the world has already acquired Avocet Sports in the UK and has also established a global design centre in Machester. The acquisition of HNF is going to help the brand in moving towards its goal of achieving a 5 per cent market share in the global e-bike market.
Europe currently stands as the leading market in the e-bike space with over 20 per cent year-on-year growth. As a result of this, Hero Cycles is aiming at getting a bigger slice of the pie here. HNF is going to play an important role in HMC's global centre of excellence for electric bicycles with the group’s global R&D centre based in Berlin. HNF is going to be strengthened with investments in distribution, brand, design along with supply chain. The factory in Bitterfeld will evolve to be the R&D application center along with high-end manufacturing incorporating state-of-the-art Kanban and Lean Production processes. Hero India will support with back-end manufacturing & supply chain from India.
HNF will be bringing in e-bike design and engineering strength. On the other hand, Hero is going to bring in its expertise in the low-cost automotive quality supply chain.
Notably, for more than 25 years Hero Motors Company has been manufacturing OEM transmission components for renowned German and global suppliers in the automotive industry with its components being integral parts of up-market products and brands such as BMW, Harley Davidson and Ducati. With major German automotive OEMs as its customers and ZF Friedrichshafen as a JV partner, HMC had Germany as its choice of destination for entry into the EU market with Germany being the epicenter of e-bike industry and the largest e-bike market in Europe.