Asia Bizz: Japanese automaker Honda Motor co is all set to dissolve its Indian motorcycle joint venture and has agreed to sell its stake to its Indian Partner called the Hero Group.

The sale price of the shareholdings in India’s Hero Honda Motors Ltd was not disclosed by Honda Motors. The estimated price was around 100 billion yen. Hero Honda in India was set up in the year 1984. Both Honda and Hero group hold 26% each in Hero Honda. Hero Honda’s market share in the India motorcycle market is almost 50% with great sales over the years.

Last year Hero Honda sold around 4.32 million motorbikes in India. The main reason for this dissolution is because Honda wants to boost its market share in India and the Hero Group is focusing a lot on exports outside the country.

Honda on the other hand is working very hard on increasing its market share in India independently, not sure of what their plans are as for now, but Honda has come out with great two wheeler bikes in India and are matching up to the market.

Sources: JapanToday