Hero Motors Ltd has formed a joint venture company with Germany-based ZF-Lemforder called ZF Hero Chassis Systems. The new company has been formed after the ZF Group's acquisition of a 50 per cent stake in Hero Motors' Chassis Systems business.

The company will invest Rs 80 crore over the next two years to set up two new plants in Gurgaon and Chennai. The two new plants will take the company’s total capacity to 4.5 lakh units.

The joint venture company has already started with two production facilities at Halol, Gujarat and Talegaon, Maharashtra, which have a combined annual capacity of 1.6 lakh units. It currently supplies front corner module and rear axle assemblies to General Motors India for all of their car models.