Date:02/12/2006 URL: http://www.thehindubusinessline.com/2006/12/02/stories/2006120203850300.htm

Back Honda's new subsidiary begins operations

Our Bureau

To integrate spare parts requirements of all Honda group cos

New Delhi , Dec. 1

Honda Motor India Pvt Ltd (HMI), a fully-owned subsidiary of Japanese auto major Honda Motor, began operations in the country on Friday with a view to integrating spare parts requirements of all Honda group companies. HMI is part of the overall strategy to strengthen and integrate operations of Honda companies in India with respect to spare parts, a company release said.

However, its biggest joint venture subsidiary, Hero Honda, is not part of the arrangement at the moment. According to industry officials, while in the first phase HMI will explore synergies in spare parts procurements, this will expand to other areas subsequently.

Similar Relationship

The company would begin its functions by taking over the parts operations of Honda Siel Cars India and gradually integrate operations of Honda Siel Power Products and Honda Motorcycles & Scooters India Ltd, the release said. However, the company said it would study the possibility of establishing a similar relationship with the fourth Honda company, Hero Honda Motors Ltd, in the near future.

Hero Honda is a joint venture company in which Honda and Munjals hold an equal 26 per cent stake each. Starting with a capital of Rs 15 crore, HMI has targeted a turnover of Rs 180 crore for 2007-08, it said. Honda Motor Company's Operating Officer, Mr Masahiro Takedagawa, will head the new company as its President & CEO.