The major Japanese automaker Honda Motor Corporation (HMC) is planning to merge its various holdings and automotive entities in India in order to form one major company, as revealed by industry souces. But the same considerations are but unsure as the spokesperson at Honda Siel Cars India (HSCI), a joint venture (JV) between HMC and Shriram Industrial Enterprises Ltd (Siel), was bit reluctant to share any views and decline to remark on the same.
Honda Motor Corporation of Japan manufactures automobiles and motorcycles and In India the brand sells passenger cars, sport utility vehicles, motorcycles and scooters in association with two major entities – the Honda Motorcycle and Scooter India (HMSI) and HSCI.
The HMSI is a fully owned subsidiary of Honda and sells two-wheelers while HSCI completely takes hold of passenger vehicles. Moreover, Honda Siel Cars India owns 5% in the Usha International Ltd, the company which was established in 1995. As per Honda plans, the company desires to have its own sole identity in the country and prefers to set up its own arm. Honda was present in India for the two-wheeler business through a joint venture with the Munjals-promoted Hero Group since early 1980s but later in 1999, the company switched to its own branch.
HMC ended its 26-year-old JV with the Hero Group in Hero Honda Motors Ltd in December 2010 to operate independently. And thereafter, HMSI has developed to overtake Chennai-based TVS Motor Company in order to become the third-largest two-wheeler manufacturer. The brand is aiming to become India’s largest two-wheeler player and is projecting to make an investment of Rs. 1,000 crore for planting its third facility in the country.
Honda made a wonderful progress in the country with its flagship sedan, City. But the competition went so tough in India with so many major automakers present that Honda lost its major market share over the decade. And absence of diesel engine car made the situation even worse. But gradually the plans of introducing a diesel run vehicle along with setting up of a diesel engine plant in India is in the pipeline, surely the projects will come soon.