World two-wheeler market leader Hero MotoCorp and the US based superbike specialist Erik Buell Racing announced a two-wheeler technology sharing agreement in Feb 2012, soon after Hero parted ways with longstanding partner Honda. Hero has since been in the process of building up their own R&D base in India, with EBR on-board to bring in cutting edge motorcycle technology that will be used on future Hero motorcycles and scooters.
While the first bikes and scooters using EBR tech are still to launch here, Hero MotoCorp has taken this joint venture a step further, announcing the Indian giant is scooping up a 49.2 percent stake in EBR for USD 25 million, or close to Rs 148 crores. While Hero has already pumped in USD 15 million towards this buyout, transfer of the balance USD 10 million amount will be completed over the next nine months, in the fiscal year 2013-14.
Hero MotoCorp has started a fully owned subsidiary in the US, HMCL (NA) through which they are investing in EBR.