Tuesday, April 3, 2012

Honda to merge HMSI and HSCI

Honda Motor Corporation of Japan is planning to consolidate its various holdings and merging its two automotive entities in India, Honda Motor Scooters and India Ltd. (HMSI) and Honda Siel Cars India (HSCI) into a one company, according to news reported by Business Standard. HMSI is two wheeler subsidiary of Honda Motor Corporation of Japan  in India where as HSCI is a four wheeler joint venture between HSCI and Shriram Industrial Enterprises Ltd (SIEL).
Honda Motor Corporation of Japan first entered into India in 1984 via Joint venture route. It made a joint venture with Indian Hero group and formed a company Hero Honda. The joint venture was ended in December 2010 where Honda has sold its entire stake to Hero group. The company is now known as Hero Motocorp. Beside this Honda also had joint venture with Kinetic Honda which started in 1985 with the company name Kinetic Honda Motors ltd. Honda ended the joint venture in 1999 and established wholly-owned subsidiary HMSI in August 1999. We have covered a story about the same “Will Hero Honda become the next Indo-Japanese joint venture break up story?”
It is to be seen how Honda will merge its both automotive entities since in HSCI, Shriram Industrial Enterprise ltd. also owns stake and its joint venture between Honda Motor Corporation of Japan and Shriram Industrial Enterprise ltd. Further, it is also becoming clear that India will drive the future growth for Honda Motor Corporation of Japan and hence it wants its own entity in India.

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