It is curtains for another Indo-Japanese automotive joint venture — Honda Siel Cars India — as Usha International, owned by the Shriram family, exited the joint venture partnership with Japan’s Honda Motor Corporation. The JV makes cars like the City, Brio, Jazz, Civic, Accord and CRV in India.
Honda has bought Shriram’s 3.6% stake (1.8 crore shares) for R180 crore at Rs 100 per share. The stake sale, finalised two days ago, ends the 16-year-old joint venture with Honda. It will change the name of the firm in the next few months. Siddharth Shriram, the owner of Usha International, ceases to be the chairman of Honda Siel.
“Usha feels it was inevitable that some day the parting would come because automobiles are not really Usha’s direct business,” the company said. “The proceeds from the stake sale would be applied to the normal development of Usha’s business.”
The other joint venture between the two firms —Honda Siel Power Products — that makes gensets and other power products remains intact. That company has been operational since 1985. Honda Siel is the sixth Indo Japanese JV to have been dissolved in India.