Honda Motor Company (HMC), the Japanese auto maker, will be having a name change in the country after it dissolved its alliance with Usha International of the Shriram Group with the new identity expected to be revealed by the end of September this year. Earlier, the company affirmed that it was taking over its Indian partner from their Joint Venture (JV), Honda Siel Cars India Limited (HSCIL). Reportedly, HMC acquired the overall 3.16 per cent stake of Usha International in the JV for Rs. 180 crore.
According to the Press Trust of India (PTI), Raman Kumar, Senior Vice President (VP) and Director, HSCIL, said, “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.”
The announcement came at the Annual Convention of Society of Indian Automobile Manufacturers (SIAM), where Sharma revealed that post the breakup of JV, the company has no intentions of conducting any structural changes and also refrained from revealing the new identity of the company that has been provided to the Registrar of Companies.
Sharma affirmed that with the exception of Siddharth Shriram, the HSCIL Board of Directors will see no change because Shriram Group had no other members in the board. Siddharth Shriram served as the chairman of the company prior to the breakup of the alliance.
Speaking on the upcoming launches, Jnaneswar Sen, Senior Vice President (VP), Sales and Marketing, HSCIL, said that the company is working on the launch of a new model of Brio hatchback with an automatic transmission system in October this year, in order to boost its sales during the festive season. Sen further added that that the Greater Noida facility of HSCIL operates at an annual production of 1.2 lac units, which currently functions at 60-70 per cent of its capacity.
When enquired about HSCIL's stance on cost hike due to the devaluation of INR against Japanese Yen, Sen replied, “We are studying whether to increase prices or not but we have not taken a decision yet.” Regarding the company's export business of auto components, Sen said, “We are looking to increase it by expanding the range of part and include some more engine parts.”
Reportedly, HSCIL is aiming to up its export business of components to Rs. 470 crore this year as compared to Rs. 299 crore recorded last year. During the first quarter (Q1) of the current fiscal, the company registered a surge of 54 per cent with its sales amounting to 29,932 units as compared to 19,433 units sold in last fiscal.
