What is the role of Hero Honda as a joint venture in the progress of the Indian economy?

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farouk23 eNotes educator| Certified Educator

Hero Honda was originally formed as a joint venture between Hero Cycles (Indian Company) and Honda (Japanese corporation). The primary purpose for the collaboration between the two companies was to introduce a low cost, fuel efficient motorcycle into the Indian market. Leveraging Honda’s technological know how and Hero Cycles manufacturing and logistics capacity, the companies where able to meet their goal. Hero Honda became the most popular, successful and highest selling motorcycle during the period of the Joint Venture. The motorcycle also made a tremendous impact on the Indian economy as its affordable price permitted greater access to the general public and small businesses. This contributed to increased market activity and growth of the Indian economy as logistics capacity and economic opportunity grew.