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Hero Honda investing in its solo future

May 2, 2011 by Bike India Team Leave a Comment

 

Big budget deals and makeover in progress

 

Japanese motorcycle giant Honda is making profit from their ex-joint venture Hero Honda even post break-up. Honda first sold their stake in the joint venture to their partner Hero group for almost Rs 4,000 crore last December. Hero however, is still dependent on Honda for technology. So as an immediate measure, Hero has struck a deal with Honda where the former will produce the Honda engines for their existing products under a licence till June 2014. Hero will pay around Rs 2,350 crore for the same over the course of the deal as royalty to Honda! On the other hand, Hero is now focusing on their solo run in the Indian motorcycle market where they are currently the leaders. It has hired a UK based creative agency Law and Kenneth to create a new brand identity and its communication, along with another international firm Wolff Olins for the same job. Hero wants to revamp their brand completely and though allowed by Honda to retain their name till 2014, want to change the brand name and logo to suit their new strategies.

 

Words: Piyush Sonsale

m.salvi@nextgenpublishing.net'

Bike India Team – who has written 984 posts on Bike India.


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