Hero Honda finally came to an end

Hero Honda, a 26 year old successful enterprise no more exists as the two partners, the Munjal Group of India and Honda Motors of Japan, finally dissolved their partnership in the presence of board members in a meeting. For a new licensing arrangement, both the partners agreed upon a memorandum of understanding and also disclosed that a final accord will be signed by them after a few days which will show green flag to both for their independency. The popular bikes of Hero Honda venture available in the country includes Hero Honda Splendor, Hero Honda CD Dawn, Hero Honda Hunk, Hero Honda Karizma, Hero Honda Glamour, etc.

The company came to an end with Honda selling 26 percent of stakes to the Munjal Group at the present Sensex rate on which the Munjals availed a discount of 30% to 50%. With this partition of Hero Honda, Honda becomes the only owner of world's largest two wheeler company.

Dissolvement of the ever successful Hero Honda is definitely expected to affect the Hero group adversely being the Indian Munjal Group is not sufficiently acknowledged with latest technology and advanced features. The company may face problems in competing with its rivals present in the market with their high efficiency models. Also it is expected to receive high competition from the wholly owned subsidiary of Honda, the Honda Motorcycles and Scooters India which is capable enough of producing high efficiency models.