Perfect mates?
This would be easily, one of the biggest marriage in Indian automotive history. India’s 2nd largest bike maker and worlds’ pronounced may jointly develop engines of superbikes in India. Few months ago it was rumoured that Yamaha’s head visited one of the Bajaj’s plant. This seems to be true, Yamaha will rope in Bajaj as its local partner and pump in Rs 500 crore over the next two years for its new entity in india. The new joint venture company will use one of the Bajaj’s plant to create a common engine platform for high-end bikes. Through this venture Bajaj will get access to latest technolgies and Yamaha will use its Bajaj’s large vendor base and in turn this would help the japanese maker to keep the check on input costs. Yamaha may also avail of this opportunity to outsource critical components from India for its operations across the world. It is important to recall Bajaj has already a similar agreement with Japanese bike maker Kawasaki and austrian motorcycle maker KTM. However, It remains to be seen though how the things out. Obviously few questions pops-up? Whether this joint venture will be confined to contract manufacturing? what will be the equity structure in the new venture? Will Bajaj sell yamaha’s superbikes? We have to wait for some more time.