Japanese auto major Honda has announced the change in the name of its Indian subsidiary from Honda Siel Cars India to Honda Cars India after it bought the 3.16 percent stake of Usha International for Rs 180 crore in August 2012. Honda Cars India is now a wholly owned subsidiary of the Japanese carmaker.
The change in name will be effective immediately in accordance to the new Certificate of Incorporation issued by the Registrar of Companies, National Capital Territory (NCT) of Delhi and Haryana. The restructuring of Honda’s car business in India is said to be a result of the poor sales performance of the Indian arm which fell 8.47 percent in the fiscal 2011-12.
The decline in the company’s car sales is also attributable to the absence of a diesel engine option across its car portfolio in the Indian market. The lack of demand for its car products has this rendered its production facilities and capacity useless.
