Hero Honda JV to continue beyond 2004

By Our Corporate Reporter

CHENNAI, OCT. 16. The joint venture of Hero group with Honda Motors of Japan would no doubt continue beyond 2004, according to Mr. Atul Sobti, Senior Vice President, Marketing and Sales, Hero Honda India. ``Only the technology agreement is coming up for renewal in 2004. It is a formality."

``Our relationship with Honda Motors of Japan is one of the best and perfect and Hero Honda is the best performing two wheeler joint venture in the entire world,'' he said.

In an informal chat with presspersons here on Sunday, he said ``Both Honda of Japan and Hero Honda are monitoring the present `dynamic situation' constantly that will help increase the market share."

With continued access to Honda technology, Hero Honda will maintain its leadership in growth and profitability and plans to increase its market share.

``Our vision is to reach 50 per cent share in the total two wheeler market in India against the present 33 per cent. Three to four years back we were having 15-16 per cent market share'' he said. ``Our sales in 2004 will be close to two million bikes against the present 1.3 billion bikes. We have the option to produce scooters but it is not yet decided," he clarified.

Mr. Sobti said with rising fuel costs and more stringent emission norms imposed by the Government, there was distinct consumer preference for high efficiency vehicles. Indeed, some of the Indian bikes were no more costlier than the Chinese ones. Hero Honda was catering to Indian middle class customers who used two- wheelers for 7-8 years on an average.

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Section  : Business
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