This Information Official Shocker: Hero to stop/discontinue/phase out Impulse, Ignitor & Maestro..!!, Read More

Discontinuing models is not exactly style of Hero.. So why? That too very new models like the Impulse, Ignitor and Maestro..

Hero enjoys a reputation among Indian customers, one of persisting models and not discontinuing them. Although technically not totally accurate (CBZ, Street, Ambition, CD100, Sleek, CD Dawn, Joy are some models which have been ceased), Hero to its credit have continued with most of its models.

But today Hero has officially shocked by making a statement (News Source: Economictimes) that it will discontinue the Impulse and the models launched post that after its partnership with Honda officially ends in 2014. The official PR speak is that such a move will be done to not having to pay royalty to Honda post 2014 for those models. The models before the Impulse (including the most important Splendor/Passion) will not be discontinued though.

My Take:

[1] It’s very difficult for me to believe that a cash rich behemoth group like Hero which have been paying royalty to a Partner like Honda for more than a quarter of a century can’t afford to pay royalty for new models like the Impulse, Ignitor & Maestro

[2] Unless of course Honda does not want to

[3] Honda needs to hold on to Activa scooter in India the way Hero has to hold on to the Splendor/Passion models

[4] Had I been in place of Honda, I would have prevented Hero from competing with my (Honda’s) backbone in India i.e. the Activa scooter. That means I would have never given Hero the Maestro scooter (which is actually the Activa with different clothes)

[5] I would have also charged a King’s ransom from Hero to let them continue with the old tech (Splendor/Passion) after the partnership ends in 2014 and will not definitely let them access the engines/tech which forms the base for my (Honda’s) current and future strategy for India (the new Activa platform and 110 cc Twister/Dream Yuga engine)

[6] If Hero was aware that the Impulse and Maestro models would be soon discontinued, why did they spend so much / put so much effort to promote them?

[7] Probably Hero wasn’t aware of it till now. Because discontinuing models isn’t exactly Hero’s style

[8] If my take is correct then probably Hero won’t launch the 110 cc (Dream Yuga/Twister based engine) Passion X Pro. Remember it was shown at the 2012 Auto Expo

What’s your take?

Related Posts

• Hero Ignitor Launched [Aug 2012]



• Hero Unveild Passion X Pro and Ignitor @ 2012 AutoExpo [Jan 2012]



• Hero to renamce CBZ Xtreme, CD Deluxe and Karizma PGM-Fi soon [Jan 2012]



• Hero Impulse Launched [Oct 2011]



• Hero without Honda? [Sep 2010]



• Story of how Munjal built Hero Honda [Jun 2007]

Disclaimer:

This is to remind that the Views or Opinions in the blog are entirely mine unless explicitly stated. The Views and Opinions published in this blog should in no way be related to any other person or organization associated -- directly or indirectly -- with me.