Hero Honda will pay Honda 45 billion yen (about Rs.2,450 crore) till 2014 as part of a new licensing agreement signed between the Hero Group and the Japanese auto major after deciding to part ways on their joint venture. Hero Honda Motors Ltd (HHML) said the amount is in line with its existing rate of royalty payment, which is about 2.7 to 2.8 per cent of net sales. For the existing products, the Indian group will stop paying royalty by June, 2014.
“... Honda and HHML have signed a new licensing agreement, which enables HHML to continue producing, selling and servicing its current products. Consideration for the licensing agreement was yen 45,000 million and becomes due through 2014,” Honda Motor Co said in a statement.
Keywords: Hero Honda