The emission norms are getting stringent every year and it is said that it was the prime reason for Honda to part ways with the Herogroup. By 2015 all the bikes in India would adhere by the BS4 norms which is much more stringent compared to the BS3.
The new norms mean that the companies have to invest a lot of money in R&D for advancing their engine and fuel injection systems for reducing the emission. The manufacturers have to redesign and make technical changes to suit the emission norms set forth. V G Ramakrishnan, senior director, Frost & Sullivan, said, “Honda knows better fuel injection systems are required to meet the next level of emission standards in India. The company has invested heavily in making its products more fuel-efficient. This technology could not have been shared with Hero Honda.” So the next logical step for Honda would be to end its tie with the Hero Group so that the technology need not be shared which would be a vital loss to the company after spending millions for R&D of its injection systems. With this split up we can expect Honda to play a much more aggressive role in introducing new bikes and pricing well.
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