Hero to use in-house technologies for its products developed at the Centre of Innovation and Technology (CIT) in Jaipur
Hero MotoCorp has decided that it won’t pay royalty to its former partner Honda anymore. The homegrown two-wheeler manufacturer will use its in-house technologies in all of its products instead of borrowing from the Japanese two-wheeler brand. For that, Hero’s own R&D centre Centre of Innovation and Technology (CIT) in Jaipur, Rajasthan will play a major role.
Interestingly, after staying in partnership for quite long time, two companies parted their ways in 2010. Since then, Hero MotoCorp has paid 388.96 crore royalty to Honda as annual royalties. During the 2016-2017 Hero paid Rs. 8.44 crore to Honda. But now, the company aims to use this cash for its own product development in order to further strengthen its leadership position in the country market.
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Hero MotoCorp is currently the leader in two-wheeler market with its range of popular products. Also, it is targeting to launch couple of new products and some facelifts as well in near future. So far, Hero is trying to refresh its entire lineup and in order to do so, the company is phasing out the models that have been using the older technologies from Honda.
In the recent revamp strategy of the entire product portfolio of Hero MotoCorp, the company’s in-house technologies developed by CIT have played crucial role. These technologies have been developed in such way these will continue to serve the Hero products for next 10 years.
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The homegrown company is undoubtedly the biggest player in the top selling commuter segment. But now, it is also aiming to grab a good share in the premium segment with couple of new products that are expected to launch in near future. Also, it is focusing on the electric scooter project as well, which could be a big boost for the Indian government’s strategy to introduce the all-electric mobility in the country by 2032.
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Source: ET