Honda Motor Co. reached a basic agreement this week to dissolve its partnership in India's Hero Honda Motors Ltd ), the Nikkei business daily reported.

Once on its own, Honda will focus its resources on wholly owned subsidiary Honda Motorcycle & Scooter India Pvt (HMSI), the Nikkei report said.

Honda and its Indian partner Hero Group will seek approval for the breakup from their respective boards of directors later this month, the paper said.

The Japanese automaker could reap up to around 100 billion yen ($1.20 billion) from the sale of its shares in Hero Honda Motors, founded in 1984 with India's Hero Group, Nikkei said.

The partners each took 26 percent stakes in the venture, which became an emerging market foothold for Honda.

Honda will sell its entire stake in the motorcycle maker to the Hero Group's founding family and investment funds by as early as March, the report added.

A standing agreement to provide technical support to Hero Honda for development and production until 2014 will not be renewed, Nikkei said.