rasrajmishra
Shweta Mishra
As we all knows that Hero had started his business career from the manufaturing of cycles and Honda from the beginning only expert in bikes so what was the main reason behind their seperation?????
Hero and Honda
- Thread starter rasrajmishra
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prtk.nayak
Prtk Nayak
An affair that lasted 26 years has recently come to an end. The reasons are many. Honda's initial objective was to enter and explore the Indian market when it formed the JV with Hero.
Now if we get into some details we will find that HONDA as a company has always been very fierce and competitive both in Japan and elsewhere. In fact the great HY War (Honda-Yamaha War) in Japan stands testimony to it. Now why would a company like that ,in a country where the disposable income is continuously increasing with the economy growing at more than 8.5%u0025 p.a. and new players coming in everyday, which company would want to lose out on this market because all said and done The Hero group is still a competitor.
Besides that Bharat IV emission norms are to be implemented soon which are very different than Bharat III emission norms. The Honda group has invested a lot in R&D to develop technology to cope with the emission norms. Sharing this technology with Hero will only mean lesser profits for both the parties in the long run..( Increased royalty for Hero as well).
Thus Changing market dynamics and global expansion ambitions might have been the reason behind this divorce..
Now if we get into some details we will find that HONDA as a company has always been very fierce and competitive both in Japan and elsewhere. In fact the great HY War (Honda-Yamaha War) in Japan stands testimony to it. Now why would a company like that ,in a country where the disposable income is continuously increasing with the economy growing at more than 8.5%u0025 p.a. and new players coming in everyday, which company would want to lose out on this market because all said and done The Hero group is still a competitor.
Besides that Bharat IV emission norms are to be implemented soon which are very different than Bharat III emission norms. The Honda group has invested a lot in R&D to develop technology to cope with the emission norms. Sharing this technology with Hero will only mean lesser profits for both the parties in the long run..( Increased royalty for Hero as well).
Thus Changing market dynamics and global expansion ambitions might have been the reason behind this divorce..
zeeshanaayan07
Zeeshan Aayan
I like all parts of Hero and Honda