Hero To Pay Rs 4500 Crore To Honda

Hero Honda will pay its Japanese partner Rs 2500 crore till 2014. This payment is in accordance with the terms and conditions between the companies new licensing agreement post the split. India’s largest 2-wheeler manufacturer has revealed the amount to be similar to the existing royalty rate, which is at 2.8% of net sales. For the existing products, the Hero Group will stop paying royalty by June, 2014.