News: Honda to merge India stakes

(BS 05/07/2006) New Delhi - Japan's Honda Motor Co today said it was looking at consolidating its holdings in different ventures in India under the newly formed company, Honda Motor India Pvt Ltd.

Though, this new entity has been set up to handle logistics for spare parts beginning for Honda's car business in India, the top management is eyeing the possibility of transferring the different shareholding of Honda Japan in India to the new company, said, Honda Motor Co South West Asia Head M Takedagawa at the sidelines of the Honda Civic launch in the capital today.

Without specifying a time-frame for the consolidation of various investments, Takedagawa said, "Technically it is complicated. We are consulting related agency and lawyers."

Honda, which entered India in 1984, has interests in two-wheeler and car business in India, apart from power products.

While it has a joint venture with the Munjals in the listed Hero Honda where it holds 26 per cent, the company has partnered the Shrirams for car and power products business, the Indian partner currently holding 0.1 per cent in Honda Siel Cars India and one per cent in Honda Siel Power Products.

It also has an independent fully-owned subsidiary Honda Motorcycle and Scooter India (HMSI), which manufactures scooters and motorcycles.

Honda Siel Cars today launched the eight generation Honda Civic, an entry level D-segment car priced between Rs 10.75-11.45 lakh, ex-showroom Delhi.

The new premium car to hit the Indian roads with both automatic and manual transmission, will take on the Skoda Octavia and Toyota Corolla vying for a segment space that has an annual market size of around 3000 units. Honda expects its latest launch to become the market leader from day one.