Hero Honda, number one motorcycle company of India is a joint venture between Hero And Honda which is more than 25 years old. This venture has been extremely successful in India in terms of sales and after sales service. Also the goodwill of the brand and brand loyalty among customers has been extremely well. After Honda set up its independent Honda Motorcycles and Scooters India (HMSI) in Manesar India to manufacture its own scooter and motorcycles in India, there has been a shadow over the joint venture Hero Honda which has intensified since year 2001.
HMSI is now leading seller of Scooters in India with its attractive offerings like Honda Activa, Honda Eterno and Honda Aviator. Also it sells motorcycles like Honda Unicorn, Honda CB Twister etc.
Honda holds a stake of about 26 % in this joint venture which is expected to value around Rs. 9000 crore. This valuation may change as per market forces and will be finalized soon.
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[...] was 11% before November 2010, but this step of the former is not targeted at a break up unlike the Hero Group and Honda break up. In fact both the companies have already stated of helping each other at crucial points in future [...]