Honda set to depart from Hero Honda

Finally the Hero group and Honda Motorcycles seems to have reached a conclusion. As per the media report, Hero group and PE will acquire the 26% stake from Honda Motorcycles. The deal is said to be around $1.2billion (Rs 5500 crores approximately). Honda will sell its entire stake in the motorcycle maker to the Hero Group’s founding family and investment funds by as early as March.  The standing agreement between Hero group and Honda to provide technical support to Hero Honda for development and production until 2014 will not be renewed, Nikkei report says.

How it will impact the Hero Honda? Can Hero sell bikes without the Honda suffix? Will the customers suffer due to unavailability of spares? What will be the future of Hero Honda? Time will answer these questions. Share us your thought on the same

9 thoughts on “Honda set to depart from Hero Honda”

  1. Hero motors will have to tie up with some other manufacturer…they don’t have option (technical expertise)…all they have is bunch of painters…who keep on spraying new color scheme…year after year…

  2. Few facts: three more years to go. Hero has already started building own R7D team in backyards. Brand “Hero” can not replace brand “HeroHonda”. Solution from Hero is focusing on product(a La GM/Bajaj style) as a brand. Hence soon Hero will end their Dhak Dhak Go promotions and start having more ads based on products. Example: Brand PASSION will be promoted instaed of HEROHONDA PASSION.

  3. If Hero brings in aprilia range honda will go to dogs will be with begging bowls on the streets of Manesar.Japanese are very cunning .TVS threw them out concentrated on own R&D now they have been able to counter suzuki.Suzuki is nowhere heard except for some low end scooters made with HMSCI assistance.These Japo bastards have to be taught a lesson

  4. Break up with Honda is not benificial for Hero group on two grounds…one Hero group will not have an access to the technology and two Honda is entering Indian market independently, which will increase the competition..So, it’s definitely not good for Hero group.

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