Hero Honda has been the market leader in manufacturing motor-cylces in India for years, with its two wheelers being favorite amongst Indians. The company is a joint venture between Hero Group of India and Japanese auto giant Honda. As of now the company is the largest manufacturer of two-wheelers in the world.
Hero Honda was established in 1984. The company started to roll out vehicles and soon the products of the company became popular with Indian buyers due to their fuel efficiency and dependability. Splendor has been the best seller-bike, which sells more than 1 million bikes a year.
As of now the company Hero Honda has 3 manufacturing plants. Two are based at Dharuhera and Gurgaon in Haryana, while the third is at Haridwar in Uttarakhand. The company brings out around 39 lakh bikes annually. The company has a sales and service network of more than 3,000 dealerships and service stations in the country.
After the opening of the Indian economy, the auto industry in India has been growing fast. All major companies like Toyota, Ford, Honda, BMW, Mercedes etc are now operating in the Indian car market. With the growing sales of cars, even bike sales have gone up significantly. Many people used to think that bike sales will get influenced by the large number of sales of cars in India. However, they all have been proved wrong as bikes are still selling in large numbers. The middle class Indians still prefer a mean of commuting which is both economical and dependable. Bikes are good for the Indian market as they are cheaper to buy and less expensive to maintain.
One reason of the success of Hero Honda was also the closed economy of the country, that did not encourage presence of large number of players in the market. The competition was not good enough at that time. At that time the waiting period of scooters of Bajaj was too long. Even other two-wheeler makers like Royal Enfield and Escort had long waiting lists. The large amount of production and expansion of selling point was also a reason of the success of Hero Honda bikes.