By now, the vast majority of the people exposed to mainstream
multimedia are already aware of Hero group and Honda Motorcorp’s divorce
last year and the subsequent solo journey of the Munjals that began in
earnest last week.
This blog’s primary motto has been to raise and simplify issues related to cars in general, but this week, I choose to make an exception. Hero Honda was not a company that made cars but like Maruti, it had its roots in the pre liberalisation era that abhorred competition and quality. But like Maruti, it played a big role in the growth of the Indian automotive industry as it became the world’s largest two wheeler maker by the turn of the century. It will be a farce not to look back at that journey and speculate on the way forward.
Hero and Honda
Back in 1983, when Hero Group controlled by the Munjals centred in Punjab and Honda Motor Corp of Japan sat down to sign a joint collaboration agreement, the two firms were as different as chalk and cheese.
This blog’s primary motto has been to raise and simplify issues related to cars in general, but this week, I choose to make an exception. Hero Honda was not a company that made cars but like Maruti, it had its roots in the pre liberalisation era that abhorred competition and quality. But like Maruti, it played a big role in the growth of the Indian automotive industry as it became the world’s largest two wheeler maker by the turn of the century. It will be a farce not to look back at that journey and speculate on the way forward.
Hero and Honda
Back in 1983, when Hero Group controlled by the Munjals centred in Punjab and Honda Motor Corp of Japan sat down to sign a joint collaboration agreement, the two firms were as different as chalk and cheese.
Hero was a desi company that had mastered the art
of making bicycles and was looking to graduate to the next step. Honda
was already the giant in the global automobile industry, a technology
and quality driven company that has few parallels.
The two firms had one common belief, that India with its bulging population, low per capita income and pathetic public transport
system would be in need for frugal means of personal transportation.
And they knew that together they can provide it like nobody else.
Hero with its inherent knowledge of how to sell products in India was the champion in marketing and sales. Honda was the undisputed leader in two wheeler technology worldwide. This marriage was made in heaven.
