Greater Noida (UP), May 19: Following its experience with the Kinetic group, Japanese auto major Honda Motors is mulling the idea of going it alone for making scooters in India. The company plans to set up a separate company with a controlling stake, said company officials.The company is in the process of finalising the details of the project, officials added.
Speaking to mediaperson at the company's Surajpur plant, Honda Siel Cars India Ltd president and chief executive officer T Fujisaki said that the company is studying the finer aspects of the project and will take a decision regarding investments, location, models and other related aspects after completing the study. The decision is expected to be taken in a few months time.
He, however, clarifed that Honda will have a controlling stake in the company.
HSCI is a joint venture between Honda Motor Company of Japan and the Siddharth Shriram-run Siel group. Honda controls 95 per cent stake in the venture. Siel has an option to buy back 15 per centstake by October 2000.
The company has presently achieved an indegenisation level of over 60 per cent and expect to reach 70 per cent by the year end, officials said.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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