Hero Group and Honda have split sometime back and the changes are taking place gradually. Hero Group have bought the stake of Honda in Hero Honda joint venture and now the Hero group is re-organizing the brand and operations of the Hero Honda. Although Hero Group has rights to use the name Hero Honda till 2014 as per the contract, but Hero Group wants to use a different name to make its place in the mind and heart of buyers.
Hero Group has applied for the name change of Hero Honda to Hero Moto. Hero Moto name has been applied for by Hero group to the registrar of companies in India. Once its approved, the official proceedings in the name change will continue as Hero Honda is a listed company.
Hero Group will be spending a good amount of money to complete the re-branding exercise by hiring experienced professionals from world renowned agency Wolff Olins for the job. A budget of up to Rs. 200 Crores will be spent on this rebranding activity.
Hero Moto is the name which will soon appear on the bikes from Hero Group rather than the existing Hero Honda brand name. It will take some time to make people recognize the new brand as the Hero Honda is a synonym in India for reliable and trouble free motorcycles. This reliability and trust has developed over years of excellence by the Hero Honda and it will take some time for Hero Moto to create the same level of brand image, popularity and trust in the Indian Market.
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