They were merely “copyists” who took the design and put together the bike. Soon after the split, Hero was left flailing in the water, as they had no engineering capability. The story of Hero’s split is a transition from RIN to VRIN. Hero built their capabilities from scratch, guided by Munjal’s vision and immaculate scenario planning. On December 16, 2010, the board of Hero Honda bought out Honda’s 26 percent stake in the Joint Venture. This lead to an increase in Hero’s frustration. Also, the lead time to develop products for the Indian market was 3 to 4 years. Hero wasn’t allowed to modify the design. There was no scope for any creativity and innovation. Honda would give them the design, and hero would assemble the bike. Despite being the industry leader, Hero had no engineering capability. The Joint Venture was successful because Hero had knowledge of the Indian Market, and Honda was a technology leader. In January 2011, Hero and Honda Motors (Japan) decided to split, after a 26 years long Joint Venture.
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