unexpected

I don't think we should under-estimate HERO group.... just like TVS came up stunning APACHE after their break up wit suzuki... HERO may come up with something great too hoping for the best

It wasn't as if TVS had suddenly come up with the APACHE all of a sudden.

TVS has had a factory racing team which started racing on its mopeds in the mid 1980s (around the same time Hero Honda was being formed). Apart from its mopeds, TVS had made models like the scooty (I don't think there was any Suzuki help involved in them, please correct me if I am wrong).

The first self made 4 stroke model from TVS was the Spectra scooter which failed in the market. After that it was the Victor, which did well for sometime before being put down. Post that it was the Apache 150 which was later updated to Apache RTR 160.

An R&D cannot come up simply with the flick of a switch even you have loads of money. And more importantly the initial products will definitely be learing milestones for any organization.

a new licensing agreement allowing the Hero group to sell Honda-developed products.


Hero Honda is required to change its company name. the new brand will be called Hero Motorcycles, or some derivation of the name.


Honda Splits From Hero, Continues Licensing - Honda Street Bike News - Motorcycle USA

may be we should not carried away by looking at their cash!!.. coz, by the time technology agreement expires with Honda in 2014.. BS4 norms would be knocking on the door by 2015.. that's going to be huge challenge for Hero group.. not only they have to produce engines for all their new Splendor/Passion/CBZ models.. but they would need them to be BS4 compliant to sell them in our cities!! and that is not going to be easy for anybody who is still at the starting line as far as R&D is concerned.

Ahh.. atlast, the Honda element is vanishing..
When I had a talk on this with a friend of mine (a biker, not an xBhpian), he said like "If Honda is leaving, then no point in buying a Hunk or CBZ or ZMA anymore. Hero survived and excelled on Honda's wings, and when its gone, its just Hero, a desi cycle manufacturing company." He even advised another friend of mine, who has booked a Hunk and waiting, that he should rethink.

I didnt say anything, bcoz I had little idea on this. Whats your comment on this guys..?

If the same trend is true for Splendor/Passion buyers then Hero should be really concerned.

CBZ Xtreme, Hunk numbers aren't as significant as Splendor/Passion numbers to make an impact in the overall Hero Honda (Opps.. Hero's) sales.

I read somwhere that the only reason for this break up was not Honda coming to India on its own. There was some concerns of Hero Groups also and these concers were regarding New Model Changes.

Probably and I am assuming here that Hero wants to launch new Products but Honda was not ready to provide them new technology as they themselves are competitors now. If this assumption is true I am happy because atleast there is intention to innovate and launch newer and better products from Hero Group.

Also this break up might affect Hero Honda, but we have to admit that this is a huge company (They have been No 1 in the world for atleats 3 years now). Considering that I am sure spending some decent amount of money on R&D should not be very difficult or them provided they have the intention. As I mentioned it seems they have that intention.

Lets bring it on Hero!!

In my experience, most of the passion buyers dont even know whats hero & Honda in Hero Honda, whats special about Honda or anything. All they know is, "HH makes the best bikes for us, Splendor was their best ever model,and the best one today is called Passion". For such people, this corporate break off is just as simple as "Oye..Hero Honda has changed its name to just Hero. We have nothing worry, they still make great bikes, and Passion is their best". So I dont think sales are gonna be affected drastically, but definitely by a small percentage, as people like us are concerned.

BTW, my actual question was, whether my friend was right or not. ie, should one really rethink his decision to buy a HH bike, or in other words, should we really expect poor product quality, lack of spares, service a pain in the a$$ and all the other bad things from Hero..?

Well he is right to an extent.. coz, there is an element of uncertainty involved here. If one wants to keep the bike for a long time.. then what about the spares after 2014.. coz, that's the time Hero would like to do away with Honda engines and bring their own on to all models. IMO, Hunk/CBZ/Zma will be most affected models after this breakup.. coz, buyers for those models are mostly aware of what goes into the bike. Even for Splendor/Passion models.. Hero would experience some attrition in urban areas if not in rural areas, but that may not be significant. One big positive towards Hero is.. they have got good number of dealers/service centres.

3 years are more than enough for hero group to reinvent their image and bring in new products....
and on the point of after sales services of products i think hero wont just abandon existing customers as they know trust is most important factor in business and they would like to stick to that.....

Honda completes exit from Hero Honda

5 Apr, 2011, 01.59PM IST,PTI

NEW DELHI: The country's largest two-wheeler maker Hero Honda today said its erstwhile Japanese promoter Honda Motor Co has exited the company completely after selling its 26 per cent stake to a group firm of the Indian promoter family.

"... Pursuant to a share transfer agreement amongst the promoters of the company, Honda Motor Co, Japan , has transferred the whole of its shareholding/voting rights in the company to Hero Investments Pvt Ltd, forming part of the Indian promoter group of the company," Hero Honda said in a filing to the Bombay Stock Exchange (BSE).

"Consequent to the same, Honda Motor ceases to be a promoter within the meaning of the term under all applicable securities laws, including the Listing Agreement(s) with the stock exchanges," it added.

In December last year, the Indian promoter of the two-wheeler maker, the B M Munjal family, had agreed to buyout the entire 26 per cent stake of Honda in Hero Honda for Rs 3,841.83 crore.

"In view of the above, the entire promoter and promoter group of the company had been further reconstituted," the filing pointed out.

As per the new structure, Hero Investments Pvt Ltd (HIPL), one of the main shareholders in Hero Honda, has now increased its stake in the Munjals-promoted auto major to 43.33 per cent from 17.33 per cent as on December 31, 2010.

Earlier this month, Honda's two representatives on Hero Honda's board, Toshiaki Nakagawa and Sumihisa Fukuda, had resigned for the final break-up of the joint venture.

In March, the Cabinet Committee on Economic Affairs had approved a proposal for a Rs 4,500 crore foreign direct investment in HIPL by Bain Capital and Lathe Investment.

The Hero Group had earlier stated that the two private equity firms, BC India Investors II, a part of Bain Capital, and Lathe Investment Pvt Ltd, will together pick up a 29 per cent stake in HIPL for Rs 3,650 crore.

Shares of Hero Honda were trading 0.81 per cent up at Rs 1,631.45 apiece on the BSE in the afternoon today.

Source : Honda completes exit from Hero Honda - The Economic Times

Feels good,at last Honda will be able to release new models without any pressure from anyone!

I hope Hero comes under a situation where it has to invest extensively into R&D or Die.
I guess the later will be applicable for them!

One of my friend didn't get a HH cause the company is split!

Way to go Honda! Die HH,Die!

any company in india can die but hero honda cannot....
just tell me why honda joined hands with hero honda...???

trust me with in a year or 2 hero will definately join their hands with some other company or they will start their own r&d unit...
remember they have pockets full of money...
and a huge network all over india. honda will take minimum 3-5 years to build that kinda network...
remember 1 thing more hero honda is trusted brand in india and its very very tough for other companies to break the image of splendors, passions, cbzs n zmas

I know it is not possible to say RIP Hero. But I wish that was true,it would have been a lesson for other companies to work hard and do something innovative rather than doing some sticker crap.Honda has a strong service backup IMO

Did my posts simply vanish from this thread?