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 PTI.
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 percent 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.