Ultra Motor breaks partnership with Hero Group
UK-based Ultra Motor Company has pulled out of a technical collaboration with the Hero Group for which they had together formed a joint venture company, Hero Ultra Pvt. Ltd.
The two have decided to part ways within a year of launching co-branded scooters and bikes in India.
Vijay Munjal, Managing Director, Hero Cycles said, “We had asked for royalty for the use of the Hero brand, which was refused by Ultra. The change in Ultra management made it more difficult to continue with the partnership.”
Timex Group former global CEO Joe Santana, who joined Ultra in January this year, is believed to be behind the strategic decision to go solo in India.
Under the previous co-branded arrangement products, two-wheelers were sold under ‘Hero Electric’ with an ‘Ultra Powered’ tag.
Pursuant to this break-up, Ultra is going to launch Ultra Motor branded electric two-wheelers independently.
The company also plans to bring electric motorcycles that can compete with 100 cc bikes of Hero Honda and Bajaj in the next fiscal.