'Hero Motorcycles, Hero Honda to compete in brands'

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'Hero Motorcycles, Hero Honda to compete in brands'

Honda Motorcycles and Scooters India said that it would not compete with its sister company, Hero Honda on volumes but by gaining recognition of its brand and customer satisfaction.

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New Delhi, June 30

Honda Motorcycles and Scooters India (HSMI) said that it would not compete with its sister company, Hero Honda on volumes but by gaining recognition of its brand and customer satisfaction.

"Hero Honda is expanding and we are also expanding. I don't think we can catch up with Hero Honda....There is no way. To us being number one does not mean scale in business or volumes, but getting recognised as an admired brand and through our customer satisfaction," Mr Shinji Aoyama, President and CEO of HMSI, told Business Line at the sidelines of the launch of its 125 cc bike CBF Stunner.

Honda sells motorcycles and scooters through two companies - Hero Honda, the joint venture company between Hero group and Honda Motor Co, Japan and through HMSI, its wholly owned subsidiary in India. Both the companies get technology from Honda Motor Co and there is a joint working committee that looks into the product differentiation between the two companies.

With both companies sourcing technology from the same partner, there had been a concern in the industry that HMSI would grab Hero Honda's share in the motorcycles market.

"India is a vast and diversified market. There is space for both brands to co-exist," Mr Aoyoma said.

Last financial year, HMSI sold 6.18 lakh scooters and 2.53 lakh motorcycles.

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