Hero Honda to buy African units

[totalmotorcycle]

Hero Honda to buy African units
Monday, October 30, 2006 - REUTERS - India - financialexpress.com



MUMBAI, OCTOBER 30: Top motorcycle maker, Hero Honda Motors Ltd, is likely to acquire subsidiaries of Honda Motor Co in Nigeria, South Africa, Egypt and other African countries, media reports said on Monday.
New Delhi-based Hero Honda, in which Munjal family and Japan's Honda each hold 26 per cent, would manufacture its existing products in those markets, a paper said.

"Talks are on with Honda Motor for a joint initiative in some foreign markets. Though we have been meeting the Honda people on this issue, nothing concrete has come of it," Hero Honda managing director Pawan Munjal was quoted as saying.

Another company executive said that Hero Honda had identified the African markets as Honda was not a significant player there but had some manufacturing and marketing base.

Last week, the company posted a bigger-than-expected 9.2 per cent drop in quarterly profit as it battled rising costs and intense competition from rival Bajaj Auto Ltd.