Honda-SIEL India Joint Venture to end

Discussion in 'Indian Automotive Scene' started by Dhillon, Mar 30, 2012.

  1. Dhillon

    Dhillon Administrator Staff Member

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    Shriram Industrial Enterprises Lid (SIEL) wants to the exit the Joint Venture by selling its five per cent stake.

    Honda Siel Cars India Ltd (HSCI) was established in 1995, wherein SIEL was a 40 per cent partner in the original investment. However, SIEL sold a part of its share to Honda for expansion of Shriram group and currently holds only 5 per cent stake in the venture. There are differences between the two sides in valuation of the stake; and a final decision and an announcement is expected in next couple of months.

    The split will certainly not affect Honda operations in India; however, might marginally delay their long-term plans here, as the company might have to wait to resolve the current issue and may also have to divert funds for the buyout. Not so long-ago the Honda two-wheelers also splitting from its long-term partner Hero Motor Corp to continue independent operations in India.
     
  2. Dhhawal

    Dhhawal New Member

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    well i sure hope that their aftersales service gets better,
     

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