Honda will likely end its cooperation with Hero Honda Motors in India very quickly, according to a story in hindu.com.
Hero Honda was founded in 1984 by a joint venture between Honda Motor and the Hero Group of India, but Honda will now sell its shares for ¥100 billion, about $1.2 billion Cdn. to the Hero Group’s founding family and an investment fund.
Honda and Hero will seek permission from their boards of directors this month for the split.
The Japanese company is also considering building a new factory in Andhra Pradesh, India, for a wholly owned subsidiary, Honda Motorcycle and Scooter India, which would improve its motorcycle business there.
Last year, Hero Honda sold 4.5 million motorcycles. A news report said that while Hero Honda sales make up a third of Honda’s worldwide motorcycle sales, the Japanese company wants full control over its production in order to react quickly to changing conditions.