No Reverse Gear from Honda
The onset for the JV between Honda group and Hero group is still alive, as Honda expressed its commitment to torch the flame. Hero Honda is the world’s largest two wheeler maker in which Honda and Hero group has 26% each in the JV. But there has been an air of speculation that Honda is likely to depart from the JV to run its show with its own subsidiary Honda Motorcycle and Scooter India.
Not withstanding the business potential to slip down Honda has affirmed its ongoing set up, said the CEO for Asian Honda Motor. The agreement between Hero and Honda is in the extension tenure for 10 years from 2004 and is approaching for a prospective renewal in another four years. The agreement enhances Honda to provide technical know-how to Hero group.
Honda is in no mood to let any negative impact on the successful run over its JV with Hero and is in the jubilant mood to celebrate the silver jubilee of their unity.
Hero Honda holds the record of being the number one two-wheeler maker since 2001 and its target for this fiscal is 40 lakh bikes.