Hero Honda divorce – at a view
One of the largest two wheeler manufacturer Hero Honda has come to an end with the recent dissolvement of their partnership. The issues to be considered are if the two companies...
One of the largest two wheeler manufacturer Hero Honda has come to an end with the recent dissolvement of their partnership. The issues to be considered are if the two companies Hero and Honda would flourish the same way as they were being together. Hero Honda with its efficiency and technology have been the favourite of Indian bike enthusiasts and have attained great success occupying a major portion of the Indian two wheeler market.
Honda is said to be completely self sufficient company in terms of production and research. The company even in its partnership period had set up its own Honda Motorcycle and Scooters India. Honda also entered the motor bike segment but strictly avoided the production of 100 cc bikes and is sure to now come up with its 100 cc low cost bikes to the market. The 100cc low cost bikes constitutes around 60 percent of the market share being India a price conscious market. The reason being for the company to enter scooter segment was to avoid any sort of conflict among the partners. Honda is capable enough of standing the market alone with high technology and designs while it is sure to face some problems with the sales and marketing sector.
Honda at its Research and Development Facility in Sanghai, China is planning to develop the low cost bikes of 100 cc which are to be tagged with a price range of Rs. 27000 only. The new bike by the company is to be designed keeping in mind the requirements of working class. The launch of this new low cost bike is definitely to affect the sales of Hero. Honda in order to test the market for low cost bikes had introduced a 110 cc Twister few days back tagged with a brand name of Hero Honda which is experiencing a sales of 15000 units per month.
Honda, with a view to increase its capacity has planned to set up a new manufacturing plant in Rajasthan as well and with this the company is expecting a total production of 2.2 million two wheelers which is definitely low than that of Hero Honda which accounted 5.2 million every year.