Name of new partner yet to be revealed but the European company boasts expertise in engines, hybrids and electric bikes according to Hero MotoCorp Managing Director Pawan Munjal

Munjal said Hero plans to buy stakes in its technology partners. 

"It's a long-term arrangement, and there is every likelihood that sooner rather than later we will financially get involved in these companies," said Munjal, speaking at an automotive industry conference. "To start with, a minority stake." 

Hero, which exports its vehicles to Sri Lanka and Bangladesh, plans to start selling them in Guatemala by October and in Nigeria by November or December, Munjal said. It also wants to start sales in Myanmar, he said, without giving a timeline. 

Hero sales fell 11.9 percent year-on-year in August as the company and its local rivals Bajaj Auto and TVS Motor faced greater competition from Japanese manufacturers such as Honda. 

High interest rates in a country where most consumers borrow money to buy vehicles, in addition to high petrol prices, have also dampened demand for cars and two-wheelers this year. 

Munjal said Hero has reduced production due to the current slowdown, without giving details, but he expected retail sales to pick up in October, when Indians traditionally begin to make big purchases for the festive season.