News Approved

I knew this alliance was ending-actually it was supposed to end in 2009, but got extended till 2014. I would like to see whether the Splendors&Passions still sell in the same numbers once they bear the Hero tag instead of Hero Honda!

a good news...... at least Hero will try some R&D of his own........ at last the Munjal's are waking up ........

Actually there is a very big picture to it.

Hero would never ever want to end this Joint Venture hence they would bow down to most of Hondas words.

Honda is a very shrewd player and knows how to do its business

With the oncoming of HMSI (with obviously Hero not liking it) it signalled Hondas plans for the future.
Initially,officially, it was planned that there would not be a product cannibalization but todays shine and glamor slug it out on same platforms (although Super splendor could well be called in a different segment)

Todays unicorn, achiever and extreme are almost at the same price point with similar engines.
and here comes the news of Honda entering the bread and butter of Hero Honda, 100cc.(which was also not said "no" when HMSI was entering India)

In times to come, there would be more product cannibalization as there is very little ground to play in indian market.


It has always been Honda which has benefitted majorly from this JV and henceforth, its very simple for Honda

If HMSI starts doing well in the 100cc segment which sells zillions of units in India, kick out heros on there butt. If it doesnt "WE" are the largest sellers in the world and "we" will continue to be one without any product cannibilizations"...............................


With this statement, I feel Mujals have started to realise this fact for the first time and may now come over the technical dependency over honda.

Till 2014, we might be a witness to only negligible changing bikes and negligible upgrades from the HH side at least..........!

Seems a very good news to me.
Honda will be running on their own record spree to capture the market that that they had not been able to, coz of another Honda already present & bigger than anything in India, HH.
& Hero group must have really started working on opening their own R'n'D department, either they'll be dead or BIGGER than anything ever seen in INDIA...
Hopefully

gettng rid of kawasaki badge didn't do much harm to bajaj. but then, they are not in direct competition with the japanese partner in this market. as far as I am concerned, hero honda products can only get better. indian market will soon get divided into honda, suzuki, yamaha, and hero, tvs, bajaj. chuckle!

With all this happening, I am wondering whether the rumoured new Karizma has anything from Honda?

I doubt 'Hero' brand will be better than 'Hero Honda' (with tech. from Honda). I guess Honda wants to make India it's hub in the next decade esp. two wheelers. Mostly likely, Honda may buy Hero's 26% stake (currently it's about 10K crores!), and all HH brand will be replaced by Honda. In the next few years, Hero may work some other JV's of their liking (Honda expressed it's strong displeasure when Hero and Nissan had premilinary discussion for small car project). Hero Honda also stayed away from Honda spares division which Honda didn't like. So some mis-understanding is happening for sure.

Hero may have made enough (or lot) of money to think become independent and do business what they like. Hero knows that 100cc may gradually be taken up by Hondas and may lose out in terms of numbers/profitability etc etc. Hero has gained enough knowledge about developing, manufacturing and assembly of automobiles through Honda.
This news article clearly says Hero is confident of doing something (may be better) without Honda (mostly non-2W space).

Honda may see Hero as a future threat to it's business if HH is liquidated, b'cos Hero will not sit quiet with huge money, Hero may well tie up with some German/Japanese/etc car makers and give competition to Honda itself.

After reading this, it's Honda that has to take a call to sink a reputed brand and most succesful JV that it created over 25 years or to give Hero a voice in decision making and listen to it than dectating things to Hero !!

The ball is in Honda's court !!

^^^Dats a big big possibility, but "Hero"Honda knows this market better than Honda, which is still in its "YES & NO" stage, of wether to bring its bigger/smaller products or not. While HH had already done enough research & knows what to launch when (Yes, Am saying this even though, they hadnt rolld out any better version/upgrade for its higher seg bikes), coz they sell, still & in the largest nos., the only Indian bike company (other than TVS) whos recorded profits last year(correct me if am wrong).
But the points you bought into light are surely not to be neglected, therez a Big possibility of HH being taken over by Honda, as Suzuki did with Maruti.

THE BEST PART: We'll be getting something new & fast (or maybe slow, read:100cc)

I doubt hero would benefit,cause the main reason as to why people still go for the splendor is "its a HONDA",and HONDA means RELIABILITY,which is true.

Vipin, of course we can't deny another JV of Hero with another International Group. But, 2014 is still far away, and a lot of things might change till then. So, let's wait and watch.

BTW Can I suggest a new name, in place of Hero Honda? Hero India!! ... Rhyming, isn't it?

well guys , i feel hero without honda .... its like an end chapter for hero ! i have read few comments about bajaj that when they snaped up ties with kawasaki long time back the company dint go down ... the difference is that bajaj was able to produce bikes and mopeds on their own and where has i have hardly seen hero is able to match that ! where has Honda is producing some very good bikes in the country at the moment ... i think it would be wise for honda to concentrate more on their own products rather sharing their resources ! TVS and Bajaj is the only brands where they produce indian made products ! I Hope Hero does somtn as TVS and bajaj has done somtn today BUT it would be really difficult for them cope up with it !


P.S I am not against any brands but I personally love somethn which is made in INDIA because We got enourmous talents in our country but its just that I dont understand why cant we compete with the world giants !

Exactly my point, HH had almost seen the minimum possible future for itself. It'll surely plan to turn tables around, surprisingly in 2014! taaaaaarrrrrrrraaaaaaa

Hero India, ummm sounds good man & yes rhyming too

With the tagline of the new company as "Dhak Dhak go, rang bhar lo"....