While one cannot deny that the JV between Hero and Honda in the Indian two-wheeler market is one of the most successful JVs that one can ask for. However, with the buzz of Honda moving out of the JV agreement to focus on its subsidiary Honda Motorcycle and Scooters India limited has been all around but the fact of the matter is the moving apart will be a problem for both the partners.

It is to be mentioned here that the Hero Honda stock has lost over 6% over the past one week and over 15% in the past one month and on the other end, Honda is expected to face difficulties to reach the stature of Hero Honda. Market watchers are of a view that it will take another 3-4 years before Honda could disturb the run of players like Hero and Bajaj.

It may be noted here that both the partners have denied any stake selling activity but the industry is expecting a final confirmation in the coming few days. Moreover, Honda will also get any royalty and technical payments in the future if it part ways with the Hero Group.