Asia Bizz: India’s Hero Group has purchased Honda Motorcycle company’s $1.9 billion stake from the company, in a move to boost overseas sales and exports. According to the deal, Hero will be venturing into overseas market on its own, and will be producing vehicles under its own brand and badge. Pawan Kant Kunjan, CEO of Hero Group has said that they will search for better markets and in the years ahead they will build themselves on the basis of volume.

After Hero separates itself from Honda, the company has huge plans overseas, and will try to sell the bike in other countries under a single badge name; which will enhance the company’s profit making abilities from overseas. Hero Honda has the world’s second largest bike market and it has planned to unveil new products in the coming years.

Reports state that the Munjal Family will buy the 26% stake of the Honda, and then will be completely taking over the company. According to experts, it will become quite tough for Honda to grow in India after the split, as the country’s bike market has already been dominated by Bajaj and Hero.

Source: Bloomberg