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Hero Group May Buy 6% Stake in Hero Honda Directly from Honda by 24th October 2010
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News approved.(Been There Done That) x 3.25
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now that's interesting piece of news....it's hard to guess the customers mindset weather they still want to go for HH products due to their reliability and after sales service or simply deny purchasing HH vehicles..Don't Honk UnnecessarilyComment
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Don't Honk UnnecessarilyComment
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Does Hero have a R&D unit? If not, Hero may just continue to buy technology from Honda to make motorcycles. If not Honda, it could possibly look to go the Yamaha way and acquire stake is an R&D company and make the latter's technology part of its lineup.
Besides, divestments like these do not happen overnight. Honda might be obliged to support Hero in one way or the other.
But this is all speculation! Very interested to see what happens. Hero must have a plan, for without it the stock will take a hit, badly!Comment
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Its simple. Honda has got a share of just 15% in HH. But the HH gets its the engines from honda. Hence the honda is putting in a lot of effort in the success of HH & HH cannot produce its bikes without honda. So who would like to have a small share in profits when it can have the whole profit for itself?? Hence the honda will get split from the hero & then will launch all the bikes of HH under its name & will earn huge profits as HH did.Originally posted by Avenger88 View Post
Hero honda was so Good.. why Honda wants to split now..??NOT BEEN THERE NOT DONE THATComment
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I was about to buy HUNK this Diwali..
Alas.. I hope there,s some good news like HONDA will start giving service for HUNK and other bikessigpicComment
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there is no problem in going for HH products....service and support will be available in the future also...Originally posted by Avenger88 View PostDon't Honk UnnecessarilyComment
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So HH is going to fall,?.wat about spares,service,and resale value, HH fans crave for.
and a 'Hero hunk'? Eww .everybody dies, but not everyone LIVES...
Carpe diem babysigpicComment
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Probably this is for good, Hero Honda is biggest manufacturer, there would be some dent in its sales with honda parting away, but then it will give open arms to Hero group to expand, develop and launch new bikes, which where very much limited due to hands tied to Honda, which itself has a subsidary running independent and competing against hero honda proudcts.
Bajaj did well with its own brands like pulsar, discover etc. Though Kawashaki provided initial technical help, but latter on it was Bajaj on its own. I have not seen any new bike comming from Hero Honda, in last 4-5 years, most where paint and sticker jobs. Probably this was limited due to there joint venture. Now we could see the biggest manufacturer showing its muscles and trying to run independent.
They had a long experince, have a market base, customer trust, it should be hard to build up there own product portfolio past Honda.Somebody Stop Me.....
Brakes Failed :(Comment
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The break up with Honda would open up export markets (those markets where it's hasn't been able to sell because of the Honda presence) for Hero.
But to sustain in the next 5-10 years Hero would need to start it's own development.
Last edited by payeng; 10-18-2010, 02:50 PM.Comment
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Perhaps this would have been possible if the hero had an R&D of its own. But AFAIK the Hero doesnt has any R&D of its own & hence things can also go against it.Originally posted by viny View PostNOT BEEN THERE NOT DONE THATComment
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the r&d bit for the hero will be new but remember, throw some money around and you can have the best people in the business.. and there is no dearth of money for the hero group.. the reputtion is an added plus in the rural market..Originally posted by madhav krishna View Post
tvs after the split strugled initially but now they are bringing good products.
bajaj also is doing good after the splitup.
and none of these had a r&d unit when the tieups were there.
the problem with hero honda is their tieup which prevents hero from flexing their arms. if they get the r&d part right, its another success story in the hands.
however, going by the brand name of honda, hero will have the toughest fight ever from the competitors. lets see how this unfolds
Suffering from Parked Motorcycle Syndrome
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Repair manuals for Hero honda Hunk
https://www.xbhp.com/talkies/do-your...eneration.htmlComment
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