If all things go well, Mahindra & Mahindra will join hands with Yamaha India in the recent future. It is touted to be a reason that it will help both the companies boost their sales in the Indian market. A tie up is on the cards in the next few days to come.
According to the proposed joint venture, M & M will obtain the technical knowhow from Yamaha. Yamaha on the other hand will benefit from the healthy distribution network that M & M possesses with them. The dealership base of the Mahindra house is also in good shape. So it will be a helping hand to Yamaha as well.
It was three years ago in the year 2008 when Mahindra made their debut in the two wheeler segment. They had then got a huge stake of 80 per cent in the Kinetic Motor Company. Three years on, M & M can afford to spend something in the region of Rs. 200 crores to Rs. 300 crores with their partner.
Mahindra will call the shots as they will be investing 51 per cent and Yamaha will have a share of 41 per cent. The remaining 8 per cent of the amount may be completed by the third partner/investor with Mahindra and Yamaha. This deal is likely to be finalized until the month of May 2012.
The sales for Yamaha have been good of late. They have had an increase of 26.82 per cent in October this year. That amounts to sales of 47,240 units. Yamaha Motors have their eyes set on the rural market, though the Bharat bike from the house of Bajaj is there to compete with. But Yamaha will be ushering in more competitively priced bikes to meet the challenge from any other quarters.
A drop in the demand for four wheelers is attracting more and more customers towards the two wheeler segment. That should work in the favor of two wheeler companies, and Yamaha is trying to cash in on the opportunity.
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