Hero Honda Now Renamed As Hero Moto Corp.


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AMG

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The imminent split between Honda and the Hero group will mark the end of the last Indo-Japanese bike collaboration wave, which kicked off in the mid-1980s.

The only difference though, according to sources, is that Honda will emerge even stronger on its own, quite unlike Yamaha and Suzuki which, after parting ways with Escorts and TVS Motor respectively, are still fringe players.

Bajaj and Kawasaki have confined their decades-long partnership to the technical sphere though there were talks some years ago of a possible equity stake. The two continue to work together on local assembly and sale of Kawasaki bikes and retailing Bajaj products in key markets across the Asean region.

Both Honda and the Hero group have constantly denied any news of a separation but industry circles do not buy this while insisting that ‘there is no smoke without fire'. What remains to be seen are the modalities of the divorce.

Outlay

While one story doing the rounds is that Honda will offload its entire 26 per cent stake to a clutch of PE investors, another suggests that the Munjals will pick up the stake.

This will cost the Indian partner upwards of Rs 8,000 crore which would typically be an outlay for setting up nearly three motorcycle plants.

Is it worth the Hero group's while to spend this kind of money just to access the present bike portfolio? “It does seem an awful lot to cough up unless there are added goodies like royalty waivers, new products coming in and so on,” said a source.

From Honda's point of view, it is getting increasingly aware that the Indian two-wheeler terrain may not be a cakewalk parade as was the case over the last few years. Competition has been intensifying with rivals like Bajaj Auto and TVS Motor, becoming far more confident and focused on their product development plans.In addition, said an industry veteran, Honda could just be getting peeved about the fact that its 100 per cent arm, Honda Motorcycle and Scooter India (HMSI), has just not been able to make a forceful impact in the motorcycle space. The company has, doubtless, emerged the undisputed leader of the gearless scooter pack but the real action is still in the bike arena.

Even while HMSI has constantly positioned itself as a premium motorcycle maker, this has not translated into the kind of volumes that could even remotely scare competition.

One key reason is the fact that nearly all of its bikes are relatively expensive when competitors have local alternatives that are as good and more affordable. Its only offering in the volumes-driven commuter segment is the Twister, which is still someway behind the Splendor, Passion and Discover brands in terms of sales.

Competition

Sources said Honda's top priority is to position HMSI as a formidable rival in this space. “Once it parts ways with the Hero group, the company will launch at least two top-class commuter bikes which would be priced at Rs 40,000 each. This is the only way it can hope to knock off competition,” said a source.

And what would the Hero group do in the meantime? Assuming the terms of the split include use of the Honda name on the bikes, the Indian company will continue to focus aggressively on smaller markets where its brand equity is still very strong.

In fact, the Hero group has played a big role over the years in stretching the joint venture's retail network to every nook and corner of the country.


Source: The Hindu
 
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Hero-Honda Joint Venture Coming to End?

Hero – Passion, Hero – Splendor, Hero – Karizma, sounds weird? Well get used to it. The most successful JV in India, one that has lasted 26 years, Hero-Honda is all set to hit for a complete split by 2014. As a result, the Munjal family is rethinking its marketing strategy for the Indian Bike market.
The family is in talks with major brand marketers and research agencies to revamp its image. The first and the obvious change is that it will drop the ‘Honda’ name from its advertising campaign.

Sources say that the company is more likely to move from parent brand to product brand strategy where the emphasis will be products like ‘Splendor’ and ‘Passion’ rather than on the Hero tag. A new logo is also on cards and will be ready shortly. From the past 26 years, Honda has supplied the technology and Hero has manufactured the bikes and sold them. But all this will end by 2014, as Honda will no more supply the technology for the bikes.
Hero will have to depend on its in-house research for the same. But if we look at the bright side, Hero could save up to Rs. 5,500 crores on royalty that it is suppose to pay Honda for the technology.

source - indianmotosblog
 

Akash

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I am sure they are prepared for it since they wont have decided to break this profitable tie up without future plans. Honestly i feel they are thinking in right direction by focussing on their entry level bikes rather than CBZ and Karizma.
 

vijay

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well, i can pretty well remember what happened to kinetic group after getting apart from honda, they did tried to sell kinetic on their own and finally had to close down, hope doesnt repeat the same thing with hero group as well.Honda's are known to have given te best engines to both these groups, and now doing amazingly well on their own as well.Lets see what fate lies for hero group.
 
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Kinetic's part off with Honda is different story & Kinetic motors are no way huge group as Hero!

In this span of 26 years Hero should have a very established R&D centre which can bring more advanced bikes.

I have been waiting for this news since Honda entered India & well its great new for me :)

Cheers to Hero group
 

350Z

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It’s all about namesake. Now let’s wait and watch exactly how profitable this move proves to be, because till now, the brand called ‘Hero Honda’ has established itself successfully in the Indian market, and whether buyers accept the absence of support of Honda brand which is known for reliability, is yet to be seen. This move also reminds me of a similar story by Bajaj.(http://www.theautomotiveindia.com/f...bajaj-badge-will-removed-all-bajaj-bikes.html)

Drive Safe,
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Yes Hero bikes are really reliable and have a longer life. Its been doing great for 26 years. India has actually opened the market to all the international market.
 

Akash

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Twist in tale!

Honda is set to give Hero the license for production and sales of its 110 cc engine that’s found in the CB Twister currently, according to sources.
When contacted, Hideto Maehara, Automobile Product Planning Bloc, Automobile Business Division, Asian Honda Motor Co said “there is no comment at this moment”. The CB Twister’s engine is like to come in a new Hero product during the next fiscal. We also learn that Honda will also license out a scooter engine to Hero. That’s yet to be confirmed.

Source: ACI
 
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AMG

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Hero Honda To Be Renamed As Hero Moto

As their first step after the spilt from their 20-year old venture with Honda Japan, Hero group has applied for a name change from Hero Honda to Hero Moto. As per further information, the brands under this group will however remain unchanged. The name change process is likely to take about two months' time.
Source: Bike India
 
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Re: Hero Honda To Be Renamed As Hero Moto

i feel this strategy will be beneficial for them..but does 'moto' name has any relation to company or they have choose kept it like this??
 

350Z

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Re: Hero Honda To Be Renamed As Hero Moto

More than the liking, it’s about creating a unique self identity for the Hero Motors Group. I feel this strategy to be correct because after the break-up with Honda, they must need to establish their own identity in the market so that they do not end up dissolving in this market with cut-throat competition.

Drive Safe,
350Z
 
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AMG

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Re: Hero Honda To Be Renamed As Hero Moto

Hero MotoCorp, or Hero Honda will reveal its new brand identity in London on August 9. This would introduce us to the new face of India’s largest two-wheeler maker, which has decided to go solo after parting ways with Honda, its partner in India for decades. The only question is, why London, and not the home ground? Seems like HH is too keen to make its brand transition an international event! All we say is, it could well have been achieved here as well, in the nation where the brand was born and thrived so much.
“As a significant first step towards the company’s transformation into a major global brand, we would be unveiling our new brand name and identity in London, United Kingdom, on August 9, 2011,” said a company statement.
The rebranding exercise for the newly incorporated company has been taken care of by Wolff Olins. The company would work on the architecture and positioning of the new brand in totality. The creative partner for the rebranding exercise is Law & Kenneth (L&K).
Honda will continue to provide technological support to hero Group till 2014, for which hero group will pay the Japanse company royalty on every bike sold along with a lump sum of about Rs. 2450 crore.
Source: Motoroids
 
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Re: Hero Honda To Be Renamed As Hero Moto

what are the vehicles that hero group possess now??? or all the hero honda vehicles be produced by paying royalty to honda.
 
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