Hero Motors, one of India’s prominent auto firms, is partnering with Germany’s Schmiede Technik Plettenberg (STP) to make sophisticated forged powertrain components. The partnership announced on March 18, 2025, will enhance export-oriented Indian manufacturing for global markets. It is good news for both companies as well as the Indian automotive industry. Here is what is being done and why it is significant.
A Strategic Partnership
STP and Hero Motors Limited (HML) have established a joint venture (JV) to manufacture high-precision forged powertrain components. Production will begin from the new plant at Hero Industrial Park in Ludhiana, Punjab, by mid-2026. The collaboration leverages India’s rising auto sector as well as the forging technology skills of STP. “By utilizing our robust R&D and manufacturing capabilities, this collaboration with STP will help us gain a substantial portion of the global powertrain components market,” said Pankaj M Munjal, Chairman, HMC Group.
Strengthening India’s Manufacturing
The JV is concentrating on near-net shape precision forging, a state-of-the-art method for auto components. The JV will consolidate India’s leadership in high-value manufacturing with emphasis on global demand for powertrain parts. Hero Motors, belonging to the HMC Group, already has a presence in India, the UK, and Thailand. The acquisition underscores its presence, blending local skills with German technology. The Ludhiana plant will be the addition to other strategic auto and EV plants such as HMC HIVE and HYM in the park.
India’s automobile industry is booming, and powertrain components are essential for automobiles, motorcycles, and electric vehicles. This arrangement puts Hero Motors in a position to capture increasing demand, both domestically and internationally. It also generates employment and increases exports, a suitable fit for India’s “Make in India” initiative. For STP, it presents an opportunity to access India’s skilled workforce and expanding market and partner with German engineering expertise.
- Joint Venture: STP and Hero Motors collaborate in producing forged powertrain components.
- Location: Ludhiana, Punjab, Hero Industrial Park.
- Production Start: Mid-2026.
- International Expansion: For tapping international markets for components.
Establishing a new plant is time-consuming and capital-intensive. Land, licensing, and technology fitting can pose problems. But the potential is enormous. India’s automotive industry is the third-largest in the world, and expansion in EV generates new demand for powertrain components. This JV also can generate cross-border innovation, as STP Chairman and CEO Cornel Mueller explained: “Our aim is to develop cross-border knowledge transfer and best practices implementation between Germany and India.”
This agreement is a representative of India’s growing presence in world manufacturing. Hero Motors, a cycle and auto parts company, is stepping into high-technology components. STP, a six-plant German forging specialist, is a veteran player in the industry with decades of experience. The two are forming a bridge of Indian minds and German precision with an eye to grab a larger slice of the world’s auto component market.
Hero’s factory in Ludhiana will be buzzing with life soon, the future of motor vehicle powertrains. A partnership with a bright future indeed.
