Hero Motors Ltd. has signed a memorandum of understanding with Kiriu, a subsidiary of Japan‘s Sumitomo Corp., for a joint venture and a technical collaboration to make auto parts. Munjal Sumi Kiriu Ltd., as the joint venture company will be called, will make disc brakes and knuckles. Hero Motors, a part of the Munjal family-owned Hero Group, will own 66.6 percent in the venture. The Hero Group, which owns 26 percent in India‘s top motorbike maker Hero Honda Motors Ltd., has a components plant in Manesar near New Delhi and will use the facility for the new joint venture. Hero recently got an order for gears to be fitted on 800-cc BMW transmission units. The sample and testing will start by September and Hero has to supply around 8,000-10,000 units. Hero which did business worth Rs300 crore last year has now orders worth $400 million for this year. The orders are for transmission units as well as full vehicle assembly or contract manufacturing, like the 200-500 cc ‘ride-on lawn mowers’, that will supplied to both US and the Europe. As part of Hero’s focus on engineering solutions, the company has got into full product designing and is working on a 1,000-cc transmission units for Bombardier. Hero stock which closed at Rs700 has gained 0.16% (Rs1.10) on 11th June 2007 (sensex gained 16 points). Hero Honda recently rolled out another variant of splendor called ‘Splendor NXG’. Hero also plans to launch a facelifted variant of passion plus.