The two-wheeler market in India is likely to get "hyper competitive" or highly specialised post the Hero Honda split, Bajaj Group Chairman Rahul Bajaj said today.
"The market may get hyper competitive...but it is good for customers," he told reporters on the sidelines of a CII-organised event here.
The Munjals of the Hero Group and Japan's Honda Motors yesterday announced the end of their 26-year-old joint venture, Hero Honda Motors. The Munjals-promoted Hero Group will buy the entire 26 per cent stake of its Japanese partner in the company for an undisclosed amount.
"Honda's exit is likely to leave a gaping hole in Hero Honda's R&D capabilities, but the Munjals-promoted Hero Group may start its own R&D in the coming days," Bajaj said. "I hope the Munjals show good initiatives to do something different.
Everything is changing with the pace of time, so why not the Munjals?" When asked what changes he expected, Bajaj said "let's see what happens after 2014."
The Hero Group and Honda hold a 26 per cent each in Hero Honda that started operations in 1984 to become the world's largest two-wheeler maker today. After the break-up Hero Honda would be renamed in due course of time although the Indian company is free to use the 'Honda' brand till 2014.