"We are waiting for the Indian government's approval for selling out stake to the partner, KEL," a Honda spokesman said in here. Honda, which owns 51 per cent of the joint venture Kinetic Honda Motor Ltd, is capitalised at Rs 154.4 million with KEL holding 19 per cent.

"We cannot comment on how much the sales will be," the spokesman quoted by Kyodo News Agency, said adding the company would make "some proceeds, not losses" on the deal.

However, the company would continue providing the Indian partner with technical support, but scooters produced will carry the brand Kinetic and not Honda, the spokesman said.

The venture was set up in 1984 in Pune and started producing 100 cc scooters in 1986. Its annual output is about 1,00,000 units compared with its production capacity of 1,20,000 units.

Honda willretain its 26 per cent stake in another Indian joint venture Hero Honda Motors Ltd, based in New Delhi, which produces motorcycles.