Hero Honda is planning to revolutionize market by bringing up a VFM Diesel Bike? I hope it isn't like those old lombardini powered Enfields with problem of vibrating
Hero Group Contemplating Diesel Motorcycles
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Forget Enfield diesels, that's baba-adam tech.
New diesel's are all over the place. Outboard motors is where diesel tech. has done really well, as well as rec. vehicles like ski & water scooter category.
I believe Germany, Canada, US, Japan lead while Korea, Italy and other EU, China, Brazil, Russia & India not too far behind in new diesel tech.
so plenty of tech. around.
So as Hero has just signed up with German-Canadian Magna-Steyr, there's no doubt in my mind about their business case. My former boss new Magna's boss Frank on 1'st name basis.
Magna is a auto parts supplier to BMW and other German car based US/Canada derivatives and more, basically a niche player. Like the Opel's re-badged by Ford or GM in the local market. Hero is a giant, mass market supplier in India.
Hero is cash rich and Magna is tech. rich. Therefore it's logical to conclude that Hero will put up the cash to or rent out a part of it's plants with Magna. The deal would be a royalty vs. buyback deal.
Sweeter if Hero can rope in Magna for investment so they can shift Magna small diesel manufacturing lines to India, and re: buyback deal with Magna, boost Magna's profit's re: lower cost of materials, design and of production in India.
Future mein, Hero like it's rivals must get into micro vehicles like mini trucks, cars etc. That's where the diesels will pan out blockbusters.
Win-win!