if honda is moving out of hero honda... hero honda becomes their primary challenger in the indian market.
and to supply engines to your biggest competitor? not a good business sense.
i am assuming that honda wants to go in for the kill. destroy hero honda in the two wheeler market here in india...
if they continue to supply them engines, i do not see any reason why they are even moving out of the deal.
unless of course, they now see bajaj as a serious thread to hero honda and think hero honda's shares are only going to go down in the future. so this is the time to move out.
---------- Post added at 06:04 PM ---------- Previous post was at 05:54 PM ----------
but...
from what i remember their existing deal lasts till 2014 and i think the talks between them were to extend it further.
if this latest report is true, honda might not extend it any further. hero would still have their tech till 2014. they would then have three years to develop their own tech or find a new partner.
---------- Post added at 06:05 PM ---------- Previous post was at 06:04 PM ----------
the cool thing is that kinetic died after honda moved out. mahindra owns kinetic now.
hero is a much bigger group and they could survive the honda's exit i suppose.
and to supply engines to your biggest competitor? not a good business sense.
i am assuming that honda wants to go in for the kill. destroy hero honda in the two wheeler market here in india...
if they continue to supply them engines, i do not see any reason why they are even moving out of the deal.
unless of course, they now see bajaj as a serious thread to hero honda and think hero honda's shares are only going to go down in the future. so this is the time to move out.
---------- Post added at 06:04 PM ---------- Previous post was at 05:54 PM ----------
but...
from what i remember their existing deal lasts till 2014 and i think the talks between them were to extend it further.
if this latest report is true, honda might not extend it any further. hero would still have their tech till 2014. they would then have three years to develop their own tech or find a new partner.
---------- Post added at 06:05 PM ---------- Previous post was at 06:04 PM ----------
the cool thing is that kinetic died after honda moved out. mahindra owns kinetic now.