Greetings! The Hero Honda and Honda breakup story is probably one of the longest breakup stories in the history of joint ventures breakups because every day or the other there are some latest developments taking place. We at Bike Advice have always been trying to track every bit of developments taking place with the break up. As per the recent news, the BM- Munjal promoted Hero Group has reportedly paid as much as Rs.811 crores as capital gains tax for buying out their ex partner Honda from the joint venture completely.
According to the Central Board of Direct Taxes spokesperson, Hero Group has paid this huge sum of 811 crores inn two installments of 100 and 711 crores respectively, totaling 811 crores. Hero Group has paid this tax at the highest rate of 22%, CBDT spokesperson added. All in all, Hero Group has kind off cleared every other formality as regards the joint venture break up so much so that they can now freely start their own brand building and promotion. Hero Group has already moved from Honda in more ways than one i.e. by trying to build their own brand image, conquering global markets and building plants abroad so that they can take advantage of low production costs and localize production.
In December last year, the B.M Munjal Group has agreed to buy out the 26% stake of Honda in Hero Honda for 3,841.83 crores. With this the most successful Indian partnership between Hero and Honda ended. With Hero paying such huge amount of taxes in the form of capital gains makes it clear to us that they are on their way for something big. We will have to wait and see if there are any more developments left in the Hero and Honda breakup.
