While a host of news reports claimed that the Japanese auto major may sell close to 6% stake in the world's largest producer of motorcycles - Hero Honda but the company has denied any such development. In fact, Honda spokeswoman Natsuno Asanuma said there is no truth in the statement at all.

However, as soon as the news hit the bourses, the stock of the company went on a downside and had gone close to 7.5% down. Notably, Hero Honda is currently the market leader and is surely one of the most recalled brands in the Indian market. It is to be mentioned here that Honda is a 26% partner in the JV where the majority stake is being held by the Munjal family.

Moreover, the deep rural network and the reliance of high mileage offering products like Splendor and Passion has been the major advantage to the company for the past few years. However, with Bajaj catching up fast ion the entry-level segment, the market leader is surely facing one of the biggest challenges in its history in the Indian two-wheeler market.