Hero and Honda are soon to Break up
Published On Oct 25, 2010 12:00 AM By Pallavi Taneja
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Hero Honda, a name which is the favourite of the Indian bike riders. A name which is ever taken together without knowing the fact behind. The fact says that these are two different bike manufacturers collaborated themselves years back and have been selling their products together in India with mutual understanding. But as per the news received, it could be enquired that the mutual understanding of the two is breaking and they are soon to detach themselves of the collaboration. The collaboration between the two took place at the time when the Indian Government did not allow any foreign investment to inherit India. But now as the Indian Government has opened the market for foreign direct investment making investments an easy path for foreign investors, the Honda does not feel the need to continue the collaboration pact been signed with the Hero.
With the growing Indian market, the Japanese company, the Honda is willing to visit its customers and the market with its own identity. The company got into the collaboration in 1980s when the Yamaha and Suzuki, one of the high selling companies also stepped into the Indian market. As with the view of license generation, the Honda got into partnership with the Hero company and was since then recognised as the Hero Honda. The company has now thought of standing the Indian market alone with its original name and to avail maximum profit by directly selling the products to the Indian customers.
As also the Indian market is experiencing a rapid growth, the company has a complete chance to settle itself and harden its identity to the market where it is already known for the quality products. With this the company also promises to work according to the customer requirements and provide them with the most enhanced and refreshed products.
As per the official statements, the Hero group also does not want to continue the collaboration with the foreign company Honda. There may be some misunderstandings have taken place between the two or may be they are breaking up with a mutual co-operation. The final news for the divorce of the two most successful companies is still awaited.