India's Hero group and Japan's Honda Motor Co Thursday formally ended their 26-year-old association that had become the world's largest manufacturer of two-wheelers.
The Hero group will buy the 26-percent foreign stake in the Indian firm.
The pact calls for Hero Group gradually launching its own products in the Indian market, and the royalty being paid to Honda will gradually start coming down from January. The two groups, however, declined to give any financial details.
'The times have changed. The markets have changed. The vision has changed. This company wants to go beyond where it is today. This company wants to go beyond borders, it wants to do stuff which it is not supposed to do,' said Hero group's co-promoter Pawan Munjal.
The Hero group will buy the 26-percent foreign stake in the Indian firm.
The pact calls for Hero Group gradually launching its own products in the Indian market, and the royalty being paid to Honda will gradually start coming down from January. The two groups, however, declined to give any financial details.
'The times have changed. The markets have changed. The vision has changed. This company wants to go beyond where it is today. This company wants to go beyond borders, it wants to do stuff which it is not supposed to do,' said Hero group's co-promoter Pawan Munjal.
