Honda India Takes ‘Divorce’ From Siel


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An acrimonious battle seems imminent between Japanese automobile giant Honda Motor Company (HMC) and its 17-year-old Indian joint venture partner, Shriram Industrial Enterprises Ltd (Siel), promoted by Siddharth Shriram, over the valuation of the latter’s five per cent stake that it wants to sell.

In 1995, the partners had set up their joint venture, Honda-Siel Cars India (HSCI), to manufacture passenger cars in the country.

Source:
Valuation battle hots up as Shriram looks to exit Honda JV
 
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Re: Honda Siel wants a 'Divorce'

honda going single in all directions i guess with motorcycles and now cars too.

wish they now put their heads in the right direction and price their new entries more aggressively.
 
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Re: Honda Siel wants a 'Divorce'

Seems it is the strategy of Japs, enter as JV with Indian co. & when business flourishes, dump the Indian co. [evil].

TVS-Suzuki,
Bajaj-Kawasaki,
Maruti-Suzuki,
Hero-honda,
And now Honda-Seil.

What next -

Toyota-Kirloskar,
HM-Mitsubishi
 
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Re: Honda Siel wants a 'Divorce'

You are right but in my opinion I would personally like Mitsubishi dumping Hm because they are simply useless without any vision or goal .
 
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Re: Honda Siel wants a 'Divorce'

You are right but in my opinion I would personally like Mitsubishi dumping Hm because they are simply useless without any vision or goal .
True, this was very evident when they launched Amby as pick-up truck, with same face [lol].
 
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Re: Honda Siel wants a 'Divorce'

Seems it is the strategy of Japs, enter as JV with Indian co. & when business flourishes, dump the Indian co. [evil].
I guess our own Mahindra too believes in the same concept

Mahindra-Ford
Mahindra-Renault
 

350Z

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Re: Honda Siel wants a 'Divorce'

The 17 Year old relationship between Honda and Siel has come to an end. Usha International has sold off 3.16% shares to Honda Japan. Therefore, Honda India will be known as 100% subsidiary of Honda Motor Corporation (Japan) from now onwards. Here is an excerpt from the official press release:
Mr. Hironori Kanayama, President & CEO, HSCI, said, “We have shared a very successful and fruitful relationship with UIL over the past 17 years. I would like to take this opportunity to express my appreciation for Mr. Siddharth Shriram’s contributions to HSCI and wish UIL a bright future.”
Drive Safe,
350Z
 
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I guess Usha International was suffering losses due to the low sales,hence probably felt opting out of the JV was a wise decision.
 
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Honda Motor to shrink sedan lineup in India

Honda Motor Co will reorganize its car business in India, scaling down its lineup of sedans and focusing on compact vehicles, the Nikkei reported.

Honda, which recently converted its India joint venture, Honda Siel Cars India Ltd, into a wholly owned unit, plans to postpone sales of the new version of its Civic sedan, and forgo manufacturing the new version of the Accord sedan in the country, the business daily said.

The Japanese car manufacturer may discontinue the Accord vehicle altogether in India, the paper said.

Honda's India sales, which fell 20 per cent in 2011, have jumped 70 per cent in January-July, helped by the newly launched Brio subcompact, the Nikkei said.

Car sales in India rose 6.7 per cent in July but were below industry estimates as higher interest rates and a hike in excise taxes stunted demand.

Honda Motor to shrink sedan lineup in India: Report - The Economic Times
 
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Re: Honda Siel wants a 'Divorce'

You are right but in my opinion I would personally like Mitsubishi dumping Hm because they are simply useless without any vision or goal .
Second this. Mitsubishi is not been able to capture the market because of the HM baggage. The cars are great (lancer, cedia, pajero) but thats it.
 
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Re: Honda Siel wants a 'Divorce'

Seems it is the strategy of Japs, enter as JV with Indian co. & when business flourishes, dump the Indian co. [evil].
I think this will not be possible in case of Maruti and Bajaj.
 
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Re: Honda Siel wants a 'Divorce'

Seems it is the strategy of Japs, enter as JV with Indian co. & when business flourishes, dump the Indian co. [evil].

TVS-Suzuki,
Bajaj-Kawasaki,
Maruti-Suzuki,
Hero-honda,
And now Honda-Seil.

What next -

Toyota-Kirloskar,
HM-Mitsubishi
+100, completely agree with you. In this case I think only TATA is the company doing it in reverse(buying Rover & Jaguar) and I am really proud of it[clap]
 
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Re: Honda Siel wants a 'Divorce'

+100, completely agree with you. In this case I think only TATA is the company doing it in reverse(buying Rover & Jaguar) and I am really proud of it[clap]
Acquiring a company and having a joint venture are 2 differnt things . Tata acquired JLR they own the company now . And they have joint venture with fiat which has broken too when it comes to sales and service .
 
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Honda India to get new company name by Sept-end

After the end of the joint venture with the Shriram Group, Honda's India car business will get it's new company name by end of September, 2012

Japanese car maker Honda Motor Co will have a new identity for its car business in India by the end of this month following the break-up of its joint venture with Usha International of the Shriram Group.

Last month, the company had announced that it was buying out the Indian partner from their joint venture, Honda Siel Cars India Ltd, which was established in December 1995.

"We have applied for the name change just a week back and it usually takes two to three weeks time. By the end of this month, the name change should happen," HSCI Senior Vice President and Director Raman Kumar Sharma told.

Speaking on the sideline of the annual convention of Society of Indian Automobile Manufacturers (SIAM) here, Sharma said there would be no other structural change to the company.

"The Honda name will of course be there in the identity. We will continue to have two different companies for two wheeler business and car business," he said without disclosing the new name of the company that has been suggested to the Registrar of Companies.

Sources, however, said with the dropping of 'Siel', the company could have simply opted for Honda Cars India.

He said apart from the exit of Siddharth Shriram, who was the chairman of the company till the JV ended, the HSCI board would remain the same as there were no other directors from the Shriram group.

Honda Motor Company had acquired Usha International's entire 3.16 per cent stake in HSCI for Rs 180 crore.

Commenting on the new launches, HSCI Senior Vice President Sales and Marketing Jnaneswar Sen said an automatic version of hatchback Brio would be launched next month.

He said the company is expecting to improve its sales performance during the upcoming festive season.

In the April-August this fiscal, the company has sold 29,932 units against 19,433 units in the year-ago period, a jump of 54 per cent.

Sen said the company's Greater Noida plant that has an annual capacity of 1.2 lakh units, currently has 60-70 per cent utilisation.

When asked if the company will go for price hike due to rupee decline against the yen, he said: "We are studying whether to increase prices or not but we have not taken a decision yet."

On the export of components, he said: "We are looking to increase it by expanding the range of part and include some more engine parts."

The company is looking to export components worth over Rs 470 crore this year against last year's Rs 299 crore, he added.

Honda India to get new company name by Sept-end| ZigWheels.com
 
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Re: Honda Siel wants a 'Divorce'

You are right but in my opinion I would personally like Mitsubishi dumping Hm because they are simply useless without any vision or goal .
I too want Mitsubishi Dumping HM,They are useless who are responsible for Mitsubishi's downfall in India.
 
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