As per the promoters of Hero Group, the news reports that it will be exiting the partnership that it has with Japan's Honda, is absolutely untrue. Neither of the two partners has anything of the sorts in their mind.

Earlier there was news that Honda is looking forward to sell 26 per cent stake in the JV. Reports said that while Honda was planning a 20 per cent stake sale, Munjal-led Hero was to sell 6 per cent stake to PE firm, KKR.

In a statement, Honda said that both the partners had shared cordial relations for quite a number of years and that there was no reason that would result in their split.

It further added that the news reports were speculative and there was no base for the same.

After the news hit the markets, the scrip of Hero Honda nosedived to end at 1,670 a piece after opening at Rs 1,775.10 on the Bombay Stock Exchange.

The two partners had extended their tie-up for another 10 years in 2004 and as per the deal clause, Honda was to give all the latest technology to the JV.