Hero's R&D set-up is still in a fledgling stage as the
company develops a full-blown facility in Rajasthan with an
investment of Rs 400 crore. The new facility, spread over a
250-acre area, will employ over 500 engineers and will be
operational in the second half of next year. Apart from its
own set-up, Hero has also sticthed up ties with US-based Erik
Buell Racing (EBR), Austrian engine developer AVL and Italian
two-wheeler design firm Engines Engineering. "Our R&D will be
doing the lion's share as far as the development of the bike
is concerned," Dua said.
Hero and Honda had been promoter partners in the vastly-
successful JV, Hero Honda Motors Ltd (HHML), that lasted for
26 years before heading for splitsville in 2011. Analysts had
doubted Hero's ability to roll out new products on its own
after the exit of Honda as the Japanese company was the sole
technology supplier to the JV.
Dua, however, said the new independent products from the Hero
stable will be as efficient as the company's existing
products. "We will meet our own proven standards in terms of
manufacturing quality, durability, re-sale value, fuel
efficiency and running cost." Hero's solo strategy comes in
as Honda has been expanding aggressively in the market. The
company -- through its fully-owned subsidiary Honda
Motorcycle and Scooters India (HMSI) - has already launched a
110cc bike 'Dream Yuga' that is in direct competition with
Hero's best-sellers Splendor and Passion models as well
others from Bajaj Auto. Hero's sales in the first-half of
this fiscal are under pressure just as HMSI has witnessed a
big surge in volumes.
Hero's volumes in the April-September 2012-13 period are down
3% at 28.94 lakh units just as HMSI saw numbers go up by 49%
12.90 lakh units.
