HMC Chairman Pankaj Munjal stated, "Our auto component business is being transformed to focus on developing advanced automotive technology parts for electric vehicles. We have begun to supply EV gearboxes for high-end vehicles manufactured by BMW, McLaren, and AMG, among others. The global demand is extremely high, particularly in Western Europe and North America." Munjal estimates that the market for EV gearboxes is worth $ 2 billion per year and growing at an 18% CAGR.

The planned capital expenditure over the next three years will be used to establish a forging facility for high-end cars, a disc brake manufacturing plant, and a new facility in Thailand to roll-out BMW gearboxes. The company is also considering expanding its R&D capabilities to meet the growing demand for electric mobility products. Mid-term, HMC Group expects the EV parts venture to generate nearly 60% of its revenues.

The turnover of the HMC Group is expected to double from Rs 5500 crore in 3 years time. Munjal informed for further growth, at least three entities within the group are likely to go in for an initial public offering (IPO) in the next 18 months.

GEF Capital Partners' managing partner Sridhar Narayan, said, "Hero Motors is actively transitioning its gears and transmission business towards electric vehicles by acquiring capabilities across product engineering and process engineering. We are excited to partner with Hero Motors in its next phase of organic and inorganic growth."