Japan’s Honda Motor Corp and the Hero Group may be going their separate ways, but that is not likely to cut short the life of the two best-selling brands that Hero Honda created: Splendor and Passion.
Three key vendors, who supply parts to Hero Honda, said the two brands will continue even after Honda stops supplying technology to the Munjals. Currently, the two companies have an agreement under which Honda will supply technology till June 2014. Another agreement will be signed in the next few weeks that will stipulate new terms.
The vendors said Munjals have assured them that at least these two brands, which have been cornerstones in the firm’s success, have significant brand equity and the Hero Group’s first priority in R&D would be to develop new technologies that prolong their life.
“In the short term, we have been told there would be no changes and even in the long term at least Splendor and Passion would exist,” said a vendor. “The entry level segment will remain key to the domestic market and the Munjals will develop technology for the same. In future, there will may be indigenous non Honda technology powering the two bikes.”