Honda Confirms HH JV Exit

Honda has confirmed its plans to sell its stake in the worlds numero uno motorcycle maker. The company plans to divest in Hero Honda Motors thus earning $1.2 billion from the sale of its 26% in the joint venture which took off in 1984. Honda plans to sell its entire stake to the Hero Group and investment funds by March, 2011 and will not provide technical support to the company post 2014, when their technical support partnership comes to an end. Will this bring an end to Hero Honda’s dominance in India, or is this the start of Hero groups engineering capabilities being challenged. Either ways, we expect Hero to evolve at the top, even without Honda.