Hero Motocop

Introduction

A part of multinational company Hero Group, founded by the Munjal brothers, Founded in the 1960s to manufacture 50 cc two-stroke mopeds, Hero Motors gradually diversified in the 80s and 90s into manufacturing larger mopeds and scooters.

In 1984, Hero entered into a technical-cum collaboration agreement with Honda Motor Co. Ltd., Japan, which set the company on a growth path. Hero's joint venture with Honda achieved a lot of success.Beginning 2001, this partnership enabled Hero Honda to be the largest manufacturer of two-wheelers in terms of volume sales. The company was also listed on The Forbes 200 Most Respected Companies in the world. And by March 2009, Hero Honda had registered a market share of 60% in the Indian motorcycle market.

Competition in the Domestic Market

"And while the law of competition may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department" - Andrew Carnegie

The above sentence reflects the position of Hero Motocorp in the current market environment,

though it still dominates the market in relative terms.

Hero Honda has its origin in 1984, with a joint venture between Hero and Honda. The focus for Hero Honda was very clear since the start, to provide an efficient motor bike for the Indian markets, which was at a very nascent stage at that point in time.

The joint venture was a very tactical one for the both the partners, Honda has the necessary technology to manufacture world class products, where as Hero had the wide distribution network, through which it could sell the motorbikes in India. In addition, Hero was aware of the market conditions in India and clearly understood the needs and wants of the Indian people. With Hero, becoming the largest manufacturer of bicycles in the world, the stage was now perfectly set for Hero to make good the technology available from Honda. Hero Honda has become a household name and the term was synonymous with motorcycles.