Honda Siel Cars India have revealed that the joint venture between Honda Motor Company Ltd., Japan and Usha International Limited has been dissolved. Following this, HSCI will be 100% Honda subsidiary in India while changing of name and other formalities will take place over a period of the coming two months.
UIL held 3.16% shares in Honda Siel Cars India (HSCI) and had been recently expressing their desire to disinvest in a bid to branch off on their own and concentrate on their own core businesses. It was hence by mutual consent that the two parties parted way bringing to a close a 17 year old partnership. The joint venture came into existence in 1995. The company has production facilities at Greater Noida and Bhiwadi in Rajasthan. HSCI lineup includes Honda City, Accord, Jazz, Brio and the imported CR-V.
Sale was on mutual consent and consisted of 18 million shares at a cost of 100 per piece including a non compete fee. As per terms of the agreement, Siddharth Shriram ceased to be Director and Chairman of HSCI. This deal will enable the company to invest and develop its own cars in the Indian market. The Honda freedom offer is currently valid on the occasion of Independence Day accomodates Civic, Accord and CR-V slaes offers currently. Select models available for sales through Canteen Stores Department (CSD) and Central Police Canteen (CPC). Last year, Honda ended a similar joint venture with Hero Group by selling its 26% stake in the two wheeler company to its Indian partners so as to bring out their own brand of motorcycles.
