Diversification strategy of two-wheeler giant

Indian 2 wheeler giant Hero Honda strikes a JV with German truck maker Daimler. Things are surely heating up in the 2 wheeler market. The times are changing for the manufacturers. Competition has intensified in last couple of years. India traditionally was a land of scooters [Hamara Bajaj], marks of an underdeveloped economy. Hero Honda came in with better products, its sleek bikes. They have always welcomed change. The winds of change are flowing once again. In recent times we saw 2 wheeler manufacturers like HH and Bajaj abandoning the 100 cc segment and going for premium segments. LML is penetrating aggressively into rural markets. Now I see a change in core strategy. Hero Honda is diversifying to new markets by going into a JV with Daimler for manufacturing of medium and light commercial vehicles. The focus being on the domestic markets and then on exports. Earlier Ashok Leyland tied up with Nissan and Eicher Motors partnered with Volvo. Currently Tata motors is the market leader with 67.7 % followed by Eicher. CV market is growing rapidly with the booming economy. These are signs of becoming a developed nation and this will increase the energy needs of the country even more.

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