Hero Honda, the largest two-wheeler maker in the Indian market, has licensed the technology of its erstwhile promoter Honda for the development of its product in future. It is to be mentioned here that both companies had earlier decided to part ways after their 26 year partnership.
Hero Group has signed a new licensing agreement with Honda under which it will be paying 45 billion yen (about Rs 2,450 crore) to its Japanese counterpart. Under this agreement, Hero group will get a license to modify or use the platforms of all the existing products, including Splendor, Passion, CBZ to develop new models.
In a statement given to PTI, Hero Honda Motors Ltd Chief Financial Officer Ravi Sud said, "We have the right to use the (Honda) technology in perpetuity for the existing models as part of the arrangement." He added that earlier, that the company had to take Honda's permission to make a change even on the design graphics but now it can change the engine or gearbox or develop on the platforms, if Hero group wishes, on their own.
While declaring company’s final results on Thursday, Hero Group’s managing director and CEO, Mr. Pawan Munjal said, "New product development will be one focus area as we move ahead in order to expand our customer base. We remain prepared to meet the market demand for our products."
