The country’s largest two-wheeler manufacturer, Hero Honda, will pay Rs 2,450 crore (45 billion yen) as royalty to the Honda Motor Corporation (HMC) till 2014 as part of a new licensing agreement signed between the Hero Group and the Japanese auto major. According to HHML, the amount is in line with its existing rate of royalty, which is about 2.7-2.8 per cent of net sales. For the existing products, the Indian group will stop paying royalty by June 2014. The royalty payment will gradually taper from about 2.75 per cent now to 2.2 per cent by 2014. The Hero Group would not pay any royalty for existing products beyond 2014.
Last December, the Hero Group and Honda had agreed to end their 26-year-old joint venture Hero Honda, with the Indian partner agreeing to buy out Honda’s 26 per cent stake in the company for Rs 3,841 crore.
| Company Name | CMP |
|---|---|
| Bajaj Auto | 9777.15 |
| Hero MotoCorp | 5229.25 |
| TVS Motor | 3743.60 |
| Eicher Motors | 7189.40 |
| Ather Energy | 850.65 |
| View more.. | |
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: