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Honda offloads stake in KHML, JV becomes technical tie-up

In an act of ownership adjustment, Honda Motors of Japan has decided to sell its 51 per cent stake in the joint venture Kinectic Honda Motor Limited, manufacturer of two-wheelers, to Kinectic Engineering Limited.

The decision, subject to all necessary government approvals, will make KHML a KEL group company. Honda would continue to provide technical support to the venture that would manufacture the current scooter models. For this purpose, Honda would enter into appropriate technical collaboration agreement with KEL which is also seeking Honda's support in achieving the year-2000 emission norms.

According to a statement issued jointly by both the partners, the new relationship based on technical collaboration and replacing the existing joint venture partnership, is mutually beneficial. The company would continue to export vehicles through Honda's network under the Honda brand name, the statement added.

UNI