New Delhi, Jan 12: The relationship between Honda Motor Co and the Hero Group continues to throw up awkward moments, but mostly the two partners manage to strike common ground.

Besides the long-standing joint venture called Hero Honda Motors (HHML), Honda also has a wholly owned arm selling two-wheelers in India, and many times, this duplication has led to friction.

Talking to DNA Money, HHML CEO Pawan Munjal cleared the air on many issues surrounding the JV operation and overlap with Honda Motorcycle & Scooter India (HMSI).

“There is no confusion within Honda on the role HHML and HMSI. Together, the two have a domestic bike market share of 56-57% and I think this should go up to 70-80% over time,” he said.

HHML is the undisputed leader in overall two-wheeler sales, a bulk of which comes from the entry-level 100 cc bikes.

HMSI, which is a strong player in the scooters segment, also has bikes in its portfolio. It is now planning to enter the 100 cc segment as well.

But what about the recent controversy over HMSI’s assertion that Hero Honda products are meant for mass, rural customers while it would cater to a more urban one?

Munjal was quick to counter this assertion. “We have just launched the Hunk, which is definitely not targeted at rural consumers and the technology for which has come from Honda. We are focusing on the premium end of the bike market and more premium products are in the pipeline.” So, HMSI needs to perhaps reengineer its own product strategy.

Munjal said that though his nearest competitor (Bajaj Auto) leads in the premium-end of the bike market, HHML has managed to double its share in the premium-end and will continue to focus here.

Rubbishing talks of a possible distribution synergy between HHML and HMSI, he said, “Synergies between us and HMSI are only on the supply side, design and product strategy.