New Delhi, April 22, 2004 - Hero Motors, a subsidiary of Hero Group and Austrian-based Bombardier-Rotax GmbH & Co. KG, a subsidiary of Bombardier Recreational Products Inc. (BRP) of Canada, are pleased to announce that they have signed a licensing agreement which will provide Hero Motors with Bombardier-Rotax state-of-the-art, low displacement engines technology for scooters.
With the access to a water-cooled 4-stroke 125 cc scooter engine technology, Hero Motors will be well positioned for the emerging ungeared scooter market in India and in other markets. Because of their superior technology, the Bombardier-Rotax scooter engines can deliver much better fuel efficiency and power than the traditional air-cooled 4-stroke engines available in India.
"To anticipate our customers needs and to come up with innovative products has always been the guiding principles at Hero Motors. This alliance will enable us to adopt Bombardier-Rotax's best practices in quality and technology and will contribute to make Hero Motors a world class manufacturer of motorcycles," stated Mr. Pankaj Munjal, Managing Director Hero Motors. "With the support of Bombardier-Rotax, Hero Motors will expand its product line-up to ensure sustained growth in this fast growing industry," he added.
"This alliance with Hero Motors is an important growth opportunity for our company because it opens the Indian market to one of our existing products," said Yves Leduc, Vice President and General Manager of Bombardier-Rotax.
Bombardier-Rotax and Hero Motors have further entered into a co-operation agreement for the sourcing of parts and engine components from India.
"This sourcing agreement, which has no impact on existing sourcing agreements between BRP and other Indian partners, will enable Bombardier-Rotax to further increase its competitiveness," added Mr. Leduc.
Hero Motors - Hero Group today is a US$1.7 bn. conglomerate comprising of two-wheelers, OEM's, bicycles, auto ancillaries and IT engineering services companies. What started as a small bicycle business has now flowered into the largest manufacturer of Bicycles and Motorcycles in the world. The group has within its manifold Hero Cycles Ltd. (Guinness Book of Records---largest producer of cycles in the world.) Hero Honda Motors Ltd. (largest manufacturer of motorcycles in the world) and a host of other critical ancillary and equipment/engineering companies like Rockman Cycles, Highway Cycles, Sunbeam Auto, and investor favorite, Munjal Showa.
Bombardier Recreational Products Inc. is a world leader in design, development, manufacturing, distributing and marketing of Sea Doo® watercraft and sport boats, Ski Doo® and Lynx® snowmobiles, Johnson® and Evinrude® outboard engines, direct injection technologies such as Evinrude E TECTM, Bombardier* all-terrain vehicles (ATV), Rotax® engines and karts, as well as Bombardier* utility vehicles.
® TM Trademark of Bombardier Recreational Products Inc. or its subsidiaries.
* Trademark of Bombardier Inc. used under license.
** Trademarks of third parties.
For information:
Pierre Pichette
Vice President,
Communications and Public Affairs
Bombardier Recreational Products Inc.
(450) 461-7762
pierre.pichette@brp.com
www.brp.com