Mahindra & Mahindra, one of the largest auto manufacturers is gearing up to join hands with Japanese automobile manufacturer Yamaha in the two-wheeler segment of India. The initiative is witnessed as M&M’s bid to mark an aggressive comeback in the two-wheeler segment.
The utility vehicle giant Mahindra & Mahindra has marked its debut in the two wheeler business in year 2008, with the acquisition of 80 percent stake of Kinetic Motor Company Limited for a sum of Rs 110 crore. According to industry sources, the joint venture between Indian and Japanese firm is believed to be a technical one, as Mahindra lacks technology for the two-wheelers.
Moreover, industry analysts believe that this tie-up can be valued between Rs 200 to 300 crore with Mahindra bringing 51 percent share of the capital and Yamaha investing 49 percent investment. Besides, the partnership terms are most likely to be similar to the recent Hero - Honda Pact, wherein Yamaha will continue to use its independent labels on its bikes.
The total sales of Yamaha increased from 26.82 per cent to 47,240 units. In the calendar year 2010, Yamaha India managed to sell 3.2 lakh units of its bikes. It has plans to take this figure to 5.2 lakh units this year. Yamaha is looking to gain from M&M's distribution and dealership network.
The utility vehicle giant Mahindra & Mahindra has marked its debut in the two wheeler business in year 2008, with the acquisition of 80 percent stake of Kinetic Motor Company Limited for a sum of Rs 110 crore. According to industry sources, the joint venture between Indian and Japanese firm is believed to be a technical one, as Mahindra lacks technology for the two-wheelers.
Moreover, industry analysts believe that this tie-up can be valued between Rs 200 to 300 crore with Mahindra bringing 51 percent share of the capital and Yamaha investing 49 percent investment. Besides, the partnership terms are most likely to be similar to the recent Hero - Honda Pact, wherein Yamaha will continue to use its independent labels on its bikes.
The total sales of Yamaha increased from 26.82 per cent to 47,240 units. In the calendar year 2010, Yamaha India managed to sell 3.2 lakh units of its bikes. It has plans to take this figure to 5.2 lakh units this year. Yamaha is looking to gain from M&M's distribution and dealership network.
No comments:
Post a Comment