Hero Motocrop formerly known as Hero Honda will launch its own two wheelers range before the year 2014, according to Business standard news. Hero Honda, the joint venture between Hero group and Honda Motor Corporation of Japan ended in August 2011. However, Hero Motocorp. owned by Hero group still has right to use Honda name and technology till the year 2014. The company also has right to source few new products from Honda under new licensing agreement.
However, as the company has to go its own after 2014, it has already started developing its own research and development facilities and tied up with technology providers globally. The company currently owns around 45% in Indian two wheeler market and aims to sale 10 million units of two wheelers annually down the line five years. It also aims to export 1 million units out of these 10 million units down the line five years.
Anil Dua, senior vice-president (marketing and sales), Hero MotoCorp, said, “We had been scouting for several potential partners globally and have now started work with some of them. There are collaborations in progress. The local R&D team has an interface with the market here. We will put the concept together for all future products and then source the technology required from experts globally for developing synergistic output.”
As mentioned earlier that the licensing agreement will expire in June 2014, the company will have to go its own and Hero Motocorp wants to make itself self sufficient by this time. Hero Motocrop’s top selling model Splendor and Passion uses CD series engine. The right for which is owned by Honda. As HMSI is aiming to make itself number 1 by 2020 in Indian two wheeler market, Hero has to develop its own R&D before this time. However, there is no such definite timeline by which Hero Motocorp. will develop its first two wheeler by its own.
“We have the right to use the Honda brand till June 2014. However, we are not taking a breather. We have already launched our new corporate identity and introduced Impulse, the first product under the Hero brand. We would work faster than has been outlined. The first product developed independently would happen much faster than expected,” Anil Dua added.
It seems that Hero Motocorp. is extensively working on R&D which is a much needed requirement for company to survive in the upcoming days.