Honda denies plan to sell stake in Hero Honda
31 Aug 2010
Hero Group today brushed aside reports of its joint venture partner, Japanese auto giant Honda planning to exit India's largest two-wheeler maker Hero Honda selling its 26 per cent stake.
Media reports said that while Honda plans to sell a 20-per cent stake to the other promoter, Munjal family of the Hero Group, it is considering selling 6 per cent to private equity firm KKR.
"We have already conveyed earlier that the Hero Group and Honda Motor Co, Japan, have for years enjoyed a very cordial and fruitful relation, resulting in millions of satisfied Hero Honda customers across the country and there has been no change in the relationship in any manner," Hero Group said in a statement.
According to Honda India spokesperson the news reports were speculative.
The company said there has been no change in the relationship in any manner after news broke out that Honda was planning to exit from the joint venture.
In 2004, the Hero group and Honda had agreed on continuing the association for 10 years, under which the Japanese partner would continue to provide technology to the JV. The JV would come up for renewal in 2014.