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Strategy war escalates between Hero and Honda

The neck-and-neck race between Hero and Honda led the country being carved up into Hero markets and Honda domains. While Hero leads in Rajasthan, UP, Madhya Pradesh, West Bengal, AP-Telegana, Honda rides ahead in Karnataka, Maharashtra, Gujarat and Kerala. There are also some other parts where the competition is on neck-to-neck. That includes Surat where Hero Moto has 42 per cent market share to Honda 40 per cent. Ditto for Karnataka where Honda leads with 32 per cent market share while Hero has 30 per cent.  “The company aims to cross 12 million units in sales by 2020, 10 per cent of which will come from global business. Two more plants are coming up in Gujarat and Andhra Pradesh,” said the spoke person of Hero Moto. Honda on other side said, “currently our focus is on building our new plant in Gujarat which will be a 1.2 million scooter factory.”  

The slight slowdown of the car sales has been balanced by the increase in the two wheeler market in India. The current size of two wheelers market is Rs.100,000 million. Foreign collaborations have taken the two wheeler industry forward. The current split between the joint ventures has triggered the spurt in growth of the industry.

 

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