Hero & Honda finally exit for the joint venture

     Hero Motors of India and Honda Motor Company of Japan has officially called off the joint venture in the Indian two wheeler segment. The JV dates back to 1984 in which Hero group held 26% shares, Honda held 26% shares and rest held with other partners. This JV saw a great success in Indian two wheeler segment by introducing the first 4 stroke motorcycles in India. Models such as CD100 and Splendor made a tremendous impact on the market, thanks to its great fuel efficiency.

     Honda will sell its 26% shares to the Hero Group. This makes the company to be wholly owned by Hero Group headed by Munjal family. A new licensing agreement will be signed in which the currently company will continue producing, selling and servicing its current products. The company’s brand name will be changed from Hero Honda to a new one.

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