Hero's problem in the form of Honda
After the Japanese auto major made its intentions clear of exiting the hero Honda JV, market watchers are of a view that it may take a lot of money from the Munjal family to keep the venture on track.
The market leader in the Indian two-wheeler industry, Hero Honda is surely one of the most profitable JVs that the Japanese automotive company in the past. It is to be mentioned here that since the point of the time the news of Honda exiting its JV with the Hero Group has hit the market, its share has lost over 13%. It is expected that a similar arrangement will be seen wherein Suzuki as seen walking out from its JV with TVS motors almost a decade back.
The analysts expect that either Hero will invest a significant amount of money in developing its R&D wing or else the company will have scout for another technology partner.
However, the second option will also bring on table brand relaunch along with other expenses in marketing and advertising. Some analysts are even expecting the relationship to continue due to the complicated nature of the same.