Honda To Offer Technical Support To Hero

It is a well known truth that Hero Honda Joint Venture is no more; nevertheless both companies will work till 2014. Hero Group which is dominated by Munjal family is to buy 26 per cent stake of Honda and will make his own brand identity in the country. Even after that Honda is willing to offer its two-wheeler platform to Hero after 2014. In this technological support, Honda is open to provide engine and its platform for Hero vehicles.

Shinji Aoyama- the president and CEO of HMSI said that Hero can use its platforms and engines only till 2014. But it can take support in terms of engine and platform by paying a one-time charge instead of annual royalty. Because there is no full-fledged research and development centre with Hero and it may depend on Honda for technological support.

Hero Honda's most popular bikes including Hero Honda Splendor, Hero Honda Karizma, Hero Honda Passion Pro and Hero Honda Pleasure will come in Hero Group stable but there will be need of a perfect and reliable engine therefore Hero may use the Honda's engine for them.

On the other hand, Honda Motors- which has already another firm with name of Honda Motorcycle and Scooter in the domestic market is targeted to get the numero uno position in the Indian two-wheeler market - will also spread its wings across country. It also announced to enter in 100cc bikes segment and will bring more gearless scooters as well. At present, Honda CB Twister 110cc is an entry-level bike from Honda's stable which is also doing well.

Currently, Honda is selling 2.2 million bikes per year but it is keen to increase it over 6.6 million by six-seven years. For it, the company is going to start its second facility in Rajasthan. with it, the company is to add more dealerships in existing 1200 dealers. In the upcoming decade, the company seeks to cross the Hero Honda's mark in the market.

HMSI wants to provide financial services to the customers, in view to make it true, the company will set up a finance arm in India. And this arm will work as a non-banking finance company. The firm is yet to get approval from the Reserve Bank of India.