Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. Since the cost of starting new projects is generally high, a joint Venture allows both parties to share the burden of the project, as well as the resulting profits. In a joint Venture, both parties are equally invested in the project in terms of money, time, and effort to Build on the original concept. INTRODUCTION A joint venture takes place when two parties come together to take on one project. The study concludes that, the main challenge for both companies would be to cope up with the ever changing environment and to grow independently. Another major reason for Honda was the refusal of Hero Honda to merge the company's spare parts business with Honda’s new fully owned subsidiary Honda Motorcycle and Scooter India (HMSI) Some of the major findings of the study finds were Hero's market share shrank to 42.7% in April-September 2012, from 45.3% in the year-ago period, and the biggest gainer has been HMSI, with a 6% rise in share, Honda Motorcycle & Scooter India (HMSI) would expand its network by opening 500 dealers and sub-dealers in tier-II and tier-III cities & Sales of Splendor have almost halved from 2.4 lakh units in April 2012 to a little over 1.20 lakh units in September. Differences ranged from Honda's refusal to fully and freely share technology with Hero, despite a 10-year technology tie-up that expires in 2014, even when Indian partner was paying high royalty to the Japanese company. But the rising differences between the two partners over a number of issues gradually led to the Split of Joint Venture. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.
The company was the largest two wheeler manufacturer in India. The technology in the bikes of Hero Honda for almost 26 years (1984 – 2010) had come from the Japanese counterpart Honda. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. Munjal family and Honda group both own 26% stake in the Company. A case study of Hero & Honda in India.ĪBSTRACT: A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera India.
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