The story of Hero Honda is an interesting one, showcasing the growth and evolution of a successful joint venture between Hero Cycles of India and Honda Motor Company of Japan. Let's delve into the history and the reasons behind their eventual separation.
Hero Honda, initially known as Hero Honda Motors Limited, was established in 1984 as a joint venture between Hero Cycles, India's largest bicycle manufacturer, and Honda Motor Company, a renowned Japanese automobile company. The joint venture aimed to capitalize on the growing demand for motorcycles in the Indian market.
At the time of its inception, Hero Honda faced numerous challenges. India's motorcycle market was dominated by Royal Enfield, Bajaj Auto, and TVS Motors, leaving limited room for new players. However, the partnership between Hero Cycles and Honda Motor Company brought together their respective expertise and resources.
Hero Cycles, led by Mr. Brijmohan Lall Munjal, possessed a strong distribution network across India. Honda Motor Company, on the other hand, had advanced technological know-how and a reputation for producing high-quality motorcycles. Combining these strengths, Hero Honda launched its first motorcycle, the CD100, in 1985.
The CD100 became a tremendous success, revolutionizing the Indian motorcycle industry. Its fuel efficiency, reliability, and affordable price appealed to the masses, and Hero Honda quickly gained a significant market share. The company continued to introduce new models and expanded its production capacity to meet the surging demand.
For nearly two decades, Hero Honda remained the undisputed leader in the Indian motorcycle market. The joint venture thrived and enjoyed remarkable success, with several iconic models like the Splendor, Passion, and Karizma capturing the imagination of the Indian consumers.
However, as time passed, the dynamics of the Indian automobile industry began to change. Honda Motor Company, with its global aspirations, wanted to establish a stronger presence in the Indian market under its own brand. On the other hand, Hero Cycles desired greater control and independence in the two-wheeler segment.
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