Hero Motocorp stops paying royalty to Honda – Report


Neelanjan Chakraborty, Motorcycle Nut, will ride, preferably race anything on two wheels!

The joint venture between the Hero Group and Honda lasted from 1984 to 2010.

A report in Economic Times states that Hero MotoCorp has stopped paying royalty to Honda. The company last made a payment on June 30, 2017.

Hero Passion Pro TR
Hero MotoCorp discontinued several slow movers like the Passion Pro TR earlier this year which use Honda engines.

Hero MotoCorp recently discontinued the Hero Passion Pro TR, Hero Passion XPro, Hero Ignitor, Hero Karizma, Hero Hunk, Hero Xtreme, Hero HF Dawn, Hero Splendor iSmart and Hero Splendor Pro Classic. These products used Honda engines for which Hero would not have to pay Honda anymore.

Hero though is still using the Honda sourced 102 cc mill in the Hero Pleasure, the 125 cc mill from the Hero Glamour and 97 cc powerplant seen in the Hero Splendor+ and Hero Passion. The Hero Xtreme Sports too uses the 150 cc mill, sourced from Honda. These products would have to be replaced with indigenous vehicles if Hero wants to keep its presence in all segments. Hero’s R&D team, headed by Markus Braunsperger, a BMW veteran of 25 years, has to work overtime to achieve this task.

Hero MotoCorp aims to launch six new products in the financial year 2017-18 of which two will be available in the market by September 2017. This is expected to include the 125 cc Hero Dare showcased at the 2014 Auto Expo.

Since the dissoution of the Hero Honda joint venture in 2010, Hero Motocorp has paid a total of INR 388.96 crore to Honda in annual royalties, the last such payout being INR 18.44 crore for 2016-17, the report cites. The company can utilise the money saved from royalty on research and development.

2017 Hero Splendor Plus BSIV at dealership front
Models like the Hero Splendor+ use the 97 cc mill sourced from Honda.

Hero’s entry to the premium motorcycle segment is expected to begin with the Hero Xtreme 200S which is expected to launch at the 2018 Auto Expo.

Hero Splendor Plus – Image Gallery

[Source: Economic Times]

Contribute to IAB
Submit Spyshots & get Bragging rights! Click Here
Custom Mods on your ride? Get it featured on IAB Submit

Hero Splendor News & Updates

New Hero HF Dawn side

Hero HF Dawn, Hero Splendor iSmart & Hero Splendor Pro Classic axed

2017 Hero HF Deluxe BSIV at dealership front three quarter

Hero raises prices of all models by up to INR 2,200

Hero discounts BSIII

Honda, Hero & Bajaj offering major discount on BSIII models

2017 Hero Splendor Plus BSIV at dealership front

2017 Hero Splendor Plus gains BSIV compliance

Hero Super Splendor i3S side

Hero Super Splendor i3S launched at INR 55,275

Top 10 best selling motorcycles in August

Honda Activa continues to maintain lead over Hero Splendor in August 2016