Hero Honda Motors Ltd has entered into a new licensing agreement with Honda Motor Co following the Japanese company's exit from the joint venture.
Hero Honda Motors Ltd, currently the largest two-wheeler maker in the world, said its board of directors at its meeting today approved a new licensing arrangement with Honda Motor Co, along with its proposed acquisition of Honda's 26 per cent stake in the joint venture.
Under the agreement, Hero Honda will continue to sell all existing products while Honda will provide new models. All exports under the brand name will continue while the Hero group will have the freedom to set up own R&D and new product development capabilities as also acquire new technology.
The Hero Honda brand name will be changed over time.
The boards of the two companies today approved the new licensing arrangement, separately, in Tokyo and New Delhi, respectively.
It will be business as usual at Hero Honda and there will be no change in ground operations in the immediate future.