| Hero Honda, a joint venture between the Munjals and Honda Motor, will also enter into an agreement with the Japanese automobile major in other markets. The Indian two-wheeler major will manufacture its existing products in these new markets. |
| "Talks are on with Honda Motor for a joint initiative in some foreign markets. Though we have been meeting the Honda people on this issue, nothing concrete has come of it," Hero Honda Managing Director Pawan Munjal said. |
| The company refused to divulge any further details. However, according to a Hero Honda executive, the company has identified these markets as Honda is not a significant player there but has some manufacturing and marketing base. |
| These markets are now dominated by domestic players. "These markets suit the same vehicle profile as that of India, which is scooters and motor cycles," added Munjal. |
| As part of its strategy, Hero Honda will export products from India in the initial stage. In the later stages, it will export products in the form of completely knocked down units under the Hero Honda brand name. |
| At present, Hero Honda exports more than 55,000 two-wheelers to Bangladesh, Sri Lanka, West Asia and Latin American countries. The company, which now depends on Honda for all its technological requirements, will utilise the latter's local expertise to sell in these overseas markets. |
| "We will prefer markets with high volumes for products similar to India. A mutual agreement benefiting both the companies is being worked out," Munjal said. |
| Hero Honda's global plans are pitted against its arch-rival Bajaj Auto Ltd, which has established a footprint in Indonesia to assemble and sell three-wheelers and high-end motorcycles. |
| The company will invest $12.5 million to set up the Indonesian unit, which will have the capacity to produce 10,000 three-wheelers and 100,000 motorcycles. Bajaj also has a joint venture known as Pte Bajaj Auto Indonesia. |
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