Вы находитесь на странице: 1из 3

Honda to launch India-specific models post Hero Honda exit

Product ReleaseJapanIndiaHonda

NEW DELHI: With its exit plan from Hero Honda being finalised, Japan's Honda Motor Co is gearing up to launch India specific two-wheeler models as it prepares for the solo ride here. The company's wholly-owned subsidiary, Honda Motorcycle and Scooter India (HMSI), will also expand its dealer base and strengthen vendor network to rapidly expand presence in the country. It will start selling 250cc sports bike CBR250R in India from April, priced at Rs 1.5 lakh onwards "Our current and future endeavors will be directed to meet all kinds of customer requirements, including introduction of new and unique India-specific models," an HMSI spokesperson told PTI. The company, however, did not elaborate on the India specific models and the time-frame for their launch. Currently, HMSI sells both scooters, such as Activa and Dio, and motorcycles, including Stunner, Shine, Twister and Unicorn in India. When asked about plans for network expansion in the wake of Honda's exit from Hero Honda, the HMSI official said: "We are concentrating to meet the current demand and also focusing to expand dealer base, strengthen vendor network and increase quality manpower to service greater customer base." At present HMSI has a sales network of 790 outlets (398 dealers and 392 branches) and 389 authorised service centres.

On January 24, Honda Motor Co and the Hero Group had executed a final binding licensing agreement paving way for the Japanese auto major's exit from the 26-year-old joint venture -Hero Honda. Under the deal, Honda will sell its 26 per cent stake in Hero Honda to the Hero Group, although it will continue to supply technology for sometime. In order to expand presence in the high-end bikes segment, HMSI will start selling 250cc roadsports bike CBR250R from April priced Rs 1.5 lakh onwards. "Bookings for CBR250R, our global 250cc road-sports motorcycle have opened from January 1, 2011. Customer interest for this motorcycle is overwhelming and within a month we have received 1,800 confirmed bookings," the official said. On the overall sales front, the company is looking for 26 per cent growth in 2010-11. "HMSI plans to sell 1.6 million units in FY 2010-11 and grow 26 per cent over the 1.27 million units sold during FY 2009-10," the official said.
Bringing an end to the 26-year-old partnership between the Hero Group and Honda Motor Corporation (HMC), Hero Honda on Tuesday said the Japanese auto maker has exited the company completely after selling its 26 per cent stake to a group firm of the Indian promoter family. Under the new structure, the Munjals promoted Hero Investment Private Ltd (HIPL) has increased its stake in Hero Honda to 43.33 per cent from the earlier 17.33 per cent (as on December 31,2010). The Indian promoter family would now hold 52.21 per cent stake in Hero Honda.

BSE | NSEPrice

Click here for Cloud Computing

Also Read
Related Stories News Now

- Honda completes exit from Hero


Honda

- Yamaha to launch scooter in


India next year

- ESPN STAR Sports the other


cricket jackpot winner

- Key resistance at 5,895 level - Domestic passenger car sales


rise 25.1% in March March

- Hero Honda sales up 24% in


Also Read
Related Stories News Now

- Sensex tanks 274pts ahead of UP


election results

- Tata Steel, ONGC in Fortune's


most admired cos list contract

- RCom bags Rs 300-cr Aadhaar - Cairn awaits nod to raise


Mangala oilfield output

- Hyundai India rejigs top mgmt


More

Pursuant to a share transfer agreement among the promoters, Honda Motor Corporation of Japan has transferred its entire shareholding/voting rights in the company to Hero Investments Pvt Ltd, forming part of the Indian promoter group of the company, Hero Honda said in a filing to the Bombay Stock Exchange (BSE). HMC would now cease to be a promoter in Hero Honda under all applicable securities laws, including the Listing Agreement(s) with the stock exchanges, the company said in the statement. Accordingly, the promoter and promoter group of Hero Honda has been reconstituted. In December, the Indian promoter of the two-wheeler maker, the B M Munjal family, had agreed to buy out HMCs 26 per cent stake in Hero Honda for Rs 3,841.83 crore. The company had sought approval from the Foreign Investment Promotion Board and awaited clearance from the Cabinet Committee on Economic Affairs (CCEA) to raise Rs 4,500 crore in foreign direct investment to buy the stake. Earlier this month, Hondas two representatives on Hero Hondas board, Toshiaki Nakagawa and Sumihisa Fukuda, had resigned. Last month, the CCEA approved the proposal for a Rs 4,500 crore foreign direct investment in HIPL by private equity firm Bain Capital LLC and Lathe Investment, a wholly-owned subsidiary of Government of Singapore Investment Corporation. The Hero Group had earlier stated that the two private equity firms, BC India Investors II, a part of Bain Capital, and Lathe Investment Pvt Ltd, will together pick up a 29 per cent stake in HIPL for Rs 3,650 crore. In line with a new licensing agreement, signed on January 24 between HMC and the Hero Group, the Japanese company would continue to provide technological knowhow to Hero Honda till 2014 in lieu of royalty. Hero Honda would now be able to grow business overseas and Honda Motorcycle and Scooter India to scale up operations in India, which was restricted under the joint venture agreement

Вам также может понравиться