Mahindra & Mahindra is set to join forces with Yamaha Motors in the two wheeler segment. The joint venture will see a capital infusion of Rs. 200-300 crore, in which 51 percent will be held by Mahindra while 41 percent will be put up by Yamaha. Owing to Mahindra’s lack of technological capability in the two wheeler segment, it is expected that Yamaha will be providing the technical knowhow, while Mahindra will lend its distribution and dealership network to the joint venture.
The partnership is expected to on the lines of the Hero-Honda pact and Yamaha will retain its independent label and continue to sell its products. For the month of October 2011, Yamaha achieved a sales growth of 26.82 percent. The company further plans to launch new affordable models for the rural markets.
As of 2011, Yamaha has a production capacity of 6,00,000 units annually through its two manufacturing plants and plans to enhance to 10,00,000 units annually by 2013.
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