Hero Honda Expects Decline In Demand

Hero Honda expects demand to decrease as banks raise interest rates to fight inflation. Hero Honda may also lose some market share as rivals add new products. Hero Honda plans to spend Rs. 115 crore to add 3,00,000 units a year to its plant in Haridwar in northern India by January, 2011. The two wheeler major expects sales to grow 12% annually for the next three years.