M&M, arguably India’s leading Utility Vehicle manufacturers is readying itself to hold hands with Japanese two wheeler manufacturer Yamaha for progressing in India. This move is being seen as M&M’s bid for some aggressive action in the two-wheeler segment.
Initially a 4 wheeler manufacturer, Mahindra & Mahindra steeped into the highly competitive two wheeler market in year 2008, what with the acquisition of 80 percent stake of the Kinetic Motor Company Limited for a sum of Rs 110 crore. As per reliable sources, this joint venture between Indian and Japanese manufacturer is most probably a technical one, mainly because Mahindra lacks technology required for two wheelers.
Not just this, many industry analysts also feel that the tie-up can be valued between something like Rs 200 to 300 crore with Mahindra bringing 51 percent share of the capital involved and Yamaha investing 49 percent investment. And the terms & conditions for the partnership are in probability likely to be very similar to the recently dissolved Hero – Honda contract, wherein Yamaha will continue to use its independent brand identity on its bikes. Basically, it can be felt that Yamaha is looking to gain from M&M’s distribution and dealership network.