Honda has announced that they are acquiring the entire stake owned by Usha International in their Indian joint venture.
With this Honda Siel Cars India is likely to get a brand change in the coming weeks. We expect it to become Honda Motors India.
Usha spoke about the deal:
Usha feels that it was inevitable that someday the parting would come, because automobiles are not really Usha’s direct business. The proceeds from the stake sale would be applied to the normal development of Usha’s business.
Honda is one of the major automakers in the Indian market selling various models including City, Brio, Jazz, Civic, Accord and CRV. They have been struggling for the last couple of years because of lack of diesel engine offerings. We believe Honda would launch diesel engine powered cars starting next year.
Incidentally, Honda sold their stake in Hero Honda to Hero Group. Hero Honda was renamed to Hero MotorCorp. Honda has their own independent two wheeler venture in the Indian market named Honda Motorcycle and Scooters India.