Hero Moto Corp and Honda Motors Separate - Case Study

Case Study of Hero Moto Corp and Honda Motor Company

Why they separated?

Hero MotoCorp and Honda Two Wheelers are two prominent players in the Indian two-wheeler industry. The two companies had a joint venture for over two decades before separating in 2010.

In 1984, Hero Cycles, an Indian bicycle manufacturer, partnered with Honda, a Japanese automotive company, to form Hero Honda Motors Limited, which focused on producing and selling motorcycles in India. The joint venture proved to be successful, and the two companies dominated the Indian two-wheeler market for several years. Hero Honda Motors Limited became the largest two-wheeler manufacturer in the world by volume.

However, in 2010, the two companies announced that they would end their joint venture. The reason for the separation was due to a disagreement over branding and distribution channels. Honda wanted to have more control over the branding and distribution of their products in India, while Hero wanted to maintain the Hero Honda brand and distribution channels.

After the separation, Hero MotoCorp (previously known as Hero Honda) continued to produce motorcycles under the Hero brand name, while Honda established a wholly-owned subsidiary in India called Honda Motorcycle and Scooter India (HMSI). Both companies continue to compete in the Indian two-wheeler market, with Hero MotoCorp being the market leader and Honda being the second-largest player.

In conclusion, the separation of Hero MotoCorp and Honda Two Wheelers was due to a disagreement over branding and distribution channels. The two companies continue to compete in the Indian two-wheeler market as separate entities.

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