Honda has agreed to dissolve its 26-year joint venture with Hero Motocorp. Honda will sell its 26% stake in Hero Honda and end its technical support. It will instead focus on expanding its wholly owned subsidiary HMSI in India. The breakdown of the partnership will change consumer perception of Hero Motocorp brands from having both Indian and foreign attributes to just Indian, which may negatively impact motivation, attitude and personality toward the products.

1. Honda's exit
from Hero
Honda Joint
venture
-
SOURCE- FINANCIAL EXPRESS Presented by-
Saurabh srivastava

2. INTRODUCTION
• Hero Honda Motors Limited
• Based in Delhi.
• A joint venture between the hero group of India and Honda of
Japan
• It has been referred to as the world's biggest manufacturer of
2-wheeled motorized vehicles since 2001, for nine consecutive
years.
• The company had a market share of 41.35% in the year 2008-
2009 and over a 25 year span it has crossed the 15 million unit
milestone.
• Hero Honda sells more two wheelers than the second, third and
fourth placed two-wheeler companies put together.
• The company's most popular model is the Hero Honda splender
which is the world's largest-selling motorcycle, selling more
than one million units per year.

3. What happened really!!!!!
• Japanese auto giant Honda has reached an agreement to dissolve their
26-year old joint venture
• Honda Motor Co is expected to sell its entire 26 per cent stake in Hero
Honda to its partner Munjals.
• Honda will no longer provide technical support to Hero Honda.
• Honda proposes to focus on Honda Motorcycle and Scooter India
(HMSI).
• Honda to enter the Indian two-wheeler market through its wholly-owned
subsidiary Honda Motorcycle & Scooter India (HMSI).
• Hero Honda is setting up the fourth plant in the country. It already has
three facilities at Dharuhera and Gurgaon in Haryana and at Haridwar
in Uttarakhand with a total capacity of 50 lakh units a year.
• HMSI has announced an investment of Rs 500 crore to set up its second
plant near Bhiwadi (Rajasthan), with an annual capacity of six lakh
units. Once the facility becomes operational, in the second half of
2011, the company's total annual capacity will reach to 22 lakh units.
• HMSI is also reportedly scouting for a location to set up its third facility

4. Its Impact on consumer behavIor ………..
PERCEPTION LEARNING
• The perception of the • Image of the company will be
consumer will change about changed.
the- • Thinking will be different.
o Future prospects. • Cognitive memory will be
o Reliability. ruined.
o Technology advancements. • The image of ‘DESH KI
o Performance doubtfulness. DHADKAN’ will be no more in
the minds of consumer.

5. Contd……
ATTITUDE
• Association with the product will be changed.
• Hero bikes will be taken as a ‘swadeshi’ product.
• Brand belief will be changed.
• Company image of DESH KI DHADKAN – DHAK DHAK GO
will be no more.
• Technological reliability will not be there.

6. contd………
MOTIVATION PERSONALITY
• Consumer will be less
motivated to buy the product
because the brand value will • Ethnocentric people will
be decreased. become a loyal consumer of
Hero group’s bike.
• Previously Hero-Honda was
having an image of both • Dogmatic consumers will
swadeshi and foreign switchover the brand.
technology ----- but now it is
having only swadeshi image
not foreign technology.