from all this it makes me wonder, if its ultimately the brand name that matters alot more or the kind of service and partly reliability & resale value?
the hyundai cars although not as solidly built as their competitors do make up for the same in terms of service not just in India but worldwide, and a few models of their still do command a respectable resale value.
with the kind of service network and service delivery they have, which at least is better than its competition in the market (purely my experience) and the resale value of their bikes will they still be able to pull it off? (on their own or would they join another partner?) well it is a wait and watch game.
and another aspect of it is, will hero still survive with out Honda technology? the very reason for asking this question is because there is big irony involved if they do break up and are refused to further produce honda tech based bikes, the way i see it is, the very reason for hero's success is HONDA hands down, its the simplicity in the design and the ease of SERVICING the bikes that goes comes with the technology and has been the primary reason all along, no wonder all road side mechanics learn to service these bikes so fast and set up shops. Imagine if Honda technology is no more in these bikes and they do plan to come up with something else it would mean a lot of complications in setting up, designing and after sales service department, which can lead to a different outcome.
if one need validation on this you are free to ask any good 2-wheeler mechanic which bike is a breeze to service, HH, TVS or Bajaj. A Bajaj pulsar especially the old ones are really a pain to service, the number of nuts, screws and bolts in them would drive a mechanic really crazy! (probably the very reason for such quick Upgrades from them). On the other Hand Tvs's R&D is still trying to catch up, finding certain flaws or root causes with TVS bikes is no job for a rookie mechanic and at times even veterans find it really hard.
the Bajaj and Tvs have gone through this and still have a long way to go before they even come close to the refinement of honda in design, simplicity and technological excellence to cut cost of material and production like honda did and does.
the way i see it, just my Personal Honest Opinion, Hero keeping(as in buying) the existing technology from Honda and then may be buying another reliable technology partner would not harm the brand much. if reliability is out of the equation, then the resale value, the brand image and eventually every thing would go down south. it doesnt make sense for Hero Honda to start with an R&D unit and build bikes from scratch at this point of time.
like the earlier comments made by the fellow bhpians, i hope their premium does come down benefiting the customers, and they still develop a good R&D for themselves.