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Can Hero group ride global bike league on its own??

Created by : Farah Fathima, Commercial Manager, Leading Auto Co.  | 10 26 2010 06:08:03 +0000
Industry : AutomobileFunctional Area : Business Processes(Operations)
Keywords : honda yamaha tvs hero honda suzuki hmsi honda activa honda dio hero honda splendour bajaj motors hero group of comapnies
Activity:  269 views;  last activity : 11 19 2010 08:46:02 +0000

Global two-wheeler rankings are due for a dramatic shift once Honda and the Hero group part ways.

With reports doing the rounds that the Munjals are set to buy out their Japanese ally's 26 per cent stake ‘anytime soon', the Indian company will then have in its kitty five million bikes and scooters annually, putting it within arm's reach of Yamaha and ahead of Suzuki. Honda will still be the leader of the pack but with a lower annual output of around 10 million units.

The difference, though, is that the Hero group's numbers could largely be confined to India as has been the business model in the joint venture where basic commuter bikes have been the biggest growth drivers.  But, can they break into the global bike league on their own with out Honda?? Share your thoughts on this...

  
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I think Hero group has a great market share at the moment, its at the top and even they have the most dealerships in the country and their market share is increasing every quarter, agree if both Hero group and Honda are parting their ways then there will be slight effect interms of the brand name which was associated with honda, but Hero group clearly has the upper hand interms of production and also a better supply chain to manage the demand which will be there in the coming days, where as others will struggle with the demand and the range of products to offer Indian consumers, whereas Hero group has all the tricks in their bag to pull off the Rabbit out of the hat and get in the top of the Global bike league on their own...
By Mridula Maity, Product Development Manager, Rugel  10 26 2010 08:08:05 +0000
 
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Good & effective management will always be on the froefront. I think Hero will manage to lead.
By Harish Vadgama, Proprietor, Self , Freelance  | 10 26 2010 19:14:38 +0000
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I am sure they will keep up the name :)
By Sapna Panchal, Network Admin/System Admin, Dell Services  | 10 26 2010 08:58:02 +0000
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I think Hero can and will not only survive, but will come out an industry global leader. As more people use physical powered transportation, for an example my recent visit to a college campus introduced me to free on campus bikes , which my guest and I enjoyed as we toured the campus, had dinner, and enjoyed our visit, all from the view of a bicyle . Allot of people , like myself, see more physical exercise used and needed daily, world wide, and as that demand increases so will this global market.

I agree they can not only make it, but with focus can make a difference with their products, becoming a household 'discussed' item !
By Ted Green, President, Bikini Computers  | 10 26 2010 08:47:02 +0000
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Hero group already created it's 'Goodwill' in the market & continuously performed well for last 7/8 years, so it will be possible for them.

I support your views, Mridula.
By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 10 26 2010 08:32:47 +0000
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If you look at the global market, Hero Honda is still a bigginer. They may have sound business collaborations and sky high sales claims but to be a global leader or even to be a part of that league they should improve in core areas like R&D(still depends on others),cost effective but technicaly sound manufacturing processes,should work on high performance moterbikes and make them local customer friendly. The problem is with basic fundamental research in automotive industry .Here in India non of the country's manufacturer has their own R&D department and even after a long time has passed they still stick to the sales of their product,I havn't seen any new efficient technology in this sector and most of the technologies which they provide are either less efficient or have become obsolate in compare to Global (specifficaly Europian) market. Indian manufacturers are still known as cheap product supplliers,compromising with efficiency,safety,environment and mostly foccusing on their sales,we have a good example of maruti suzuki and they all are want to imitate their(maruti's)succes story .just look at the interiour (shear negligence of security and comfort),body ,engine,safety etc. Here Hero Honda groupe is not doing any different in their business, they may be launching new brands in different segments like engine capicity and ride, after ever two month but you will hardly find any improvement in claimed technologies which they think /consider as mass puller. still the problem is with the attitude of making large sales which can't make it the part of global league.If we look at the europian market ,they don't have much chances of celibrating on thier sales on every quarter but the very best thing with them is their devotion to basic fundamental research in automotive engineering which you would not find here with indian manufacturers.Some of the core areas like material research,new manuf technologies,workforce management,quality audits and standards ,benchmarking and in internal combustion engines ,these Europian companies have done great job and i can guarentee them nobody from india could be challenge to their business untill or unless we indians do the same or follow their success mantra.
By AOUCHITYA KUMAR, trainee FEA softwaresin MSC.Nastran/Patran,automobile/mechanical engineer.  | 11 19 2010 08:46:02 +0000
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When Bosch left IFB , it did make a difference in the brand factor as customer is concerned thats because Bosch enjoys a better brand value than IFB since its a global brand but the clever thing is they always kept Bosch as a background brand. There are other brands who have done the same but shorter duration of time .

Videocon did the same thing with Toshiba for Bazooka technology

BPL did the same thing with Sanyo for refrigeration products like dridge, air conditioners. Using the help of the bigger brand is good for earning sudden recognition but the effect should be slowly brought down as they develop the brand.

I think in this regard IFB Bosch has been partly successful as IFB still holds a good brand value.

The same cannot be said about BPL and Videocon.

Even Mahindra Logan will face the same problem since Renault enjoys a better brand image than Mahindra as far as quality is concerned.

But in the case of Hero Honda I feel Honda holds better recognition than Hero even though both are given equal importance as far as the naming is concerned. Even when you spell the name when it makes a big difference when you say Hero Honda and when you just say Hero. Its going to be interesting to see how the marketer is going to solve this problem. I feel that its going to be a brand confusion in the mind of consumers for a period of time.

This is going to be the moment for Bajaj to claw back in. As far as youthful image is concerned Bajaj scores way over Hero Honda .

If they can just break that halo around the Hero Honda brand , they can try challenging the market domination of the largest motorcycle manufacturer in the world. It would be interesting to see how TVS is going to play. I want Kawasaki to come back . Suzuki seems to have gone with the wrong marketers to launch the brand. The quality of advertisement is no where in the league of Yamaha or HeroHonda or Bajaj which seems to have really hit the right chord with the consumers as far as advertisement is concerned.


A simple question to all. Are you willing to pay 8 Lacs for Maruti SX4 or 15/17 lacs for Maruti Kizashi ?

If yes, then Hero Honda has a chance but I clearly feel that they won't be able to compete in the 200cc+ biking segment with its Japenese counter parts.

A premium sub brand is called from the house of Hero .
By Joe Antony, Retail Sales and Marketing, JSW Steel Limited  | 10 26 2010 09:45:09 +0000
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Its really difficult for the Hero group to venture on their own with world class products from now on, as compared to Hero group now Honda is picking up strides leaps and bounds with their gearless and geared vehicles in the two-wheeler segment, and Hero group alone looks all the more alone in the bike segment without Honda when they part their ways, and its a great time for Yamaha's the suzuki's and the Bajaj's and the TVS to dominate the market when both Hero and Honda part their ways..
By Farah Fathima, Commercial Manager, Leading Auto Co.  | 10 26 2010 06:08:03 +0000
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