Hero And Honda Will Remain Together

By vicky.in

Published: Wednesday, September 1, 2010, 14:28 [IST]

Hero Group has clearly stated that both Hero Group and Honda Japan,have for years enjoyed a very cordial and fruitful relation, resulting in millions of satisfied Hero Honda customers across the country and there has been no change in the relationship in any manner. Earlier, there were speculations that joint venture partner, Japanese auto giant Honda, is planning to exit India's largest two-wheeler maker Hero Honda by selling its 26 per cent stake. But the statement from the Hero Group has cleared the speculations.

Hero and Honda have been partners for decades and Hero Honda is the World's largest two-wheeler maker. In 2004, Hero group and Honda extended their agreement for 10 years, under which the Japanese partner would continue to provide technology to the JV.

But, after Honda's decision to enter the Indian 2 wheeler segment with its HMSI (Honda Motorcycle & Scooter India) there has been a market speculation that the friction between the two companies started.
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In 2009, Asian Honda Motor President and CEO Fumihiko Ike stated that both Hero Honda and HMSI witness huge potential to grow in India, there is no change in the business plan. He added that both Hero group and Honda Japan, are working on sustaining the success of Hero Honda.

Hero Honda and HMSI have huge plans for Indian two wheeler segment. Both the companies have launched competitive, value for money products. Hero Honda is readying its fourth plant which will have an annual capacity of 50 lakh units while HMSI has invested Rs.500 crore to set up its second plant near Bhiwadi(Rajasthan) which will have an annual capacity of 22 lakh units.

Article Published On: Wednesday, September 1, 2010, 14:21 [IST]

Read more on: #hero honda #scooter #two wheeler

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