Hero Honda will become Just Hero Motorcycles

According to some news sources Honda, Japan based bike manufacturer wants high royalties against record revenue and profit by Hero Honda but Hero groups does not want to pay more than 26% stake. Due to this dispute Hero groups chairman Brijmohanlal Munjal will buy the 26% stake from Honda. As per the current market valuation Honda's 26% stake is valuation at over Rs. 9,000 crores. One of the most successful joint venture in the world for such a long time, Hero Honda joint venture was formed in 1984 between Indian Hero group and Japan based bike maker Honda.

Although companies management refuse this news and Honda's spokesman told that the company doesn't want to sell his stake. After the news in market Hero group issued a statement, as per statement the new report is incorrect and speculative. "we have already conveyed that the Hero group and Honda Motor have for years enjoyed very cordial and fruitful relations and there has been no change in the relationship in any manner".

If the news sources is going in right direction than it's possible that Hero Honda will become just Hero Motorcycle and Scooters Ltd.