Mahindra & Mahindra, one of the largest auto manufacturers in the Indian market, is all set to join hands with Japanese automobile manufacturer Yamaha in the two-wheeler segment of India. The move has been seen as M&M’s bid to mark an aggressive comeback in the two-wheeler segment of the country.
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.
As per the industry sourced, the partnership between these Indian and Japanese firm believed to be a technical one, as Mahindra lacks technology for the two-wheelers. The industry analysts expect 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. Moreover, the partnership terms are expected to be similar to recent Hero - Honda Pact, where Yamaha will co9ntinue to use its independent labels on its bikes.
In the month of October 2011, total sales of Yamaha surged 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, and plans to take this figure to 5.2 lakh units this year.
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