The Japanese bike maker is facing tough competition from rivals Honda and Suzuki in India and a possible manufacturing and marketing tie-up with home-grown Mahindra could prove crucial for the market. For Mahindra, the tie-up will greatly help in increasing its marketing strength.
Sources said that there were comprehensive discussions going on. Yamaha wanted many things. They’re looking at a holistic business partnership, which includes marketing and manufacturing. He informed that Yamaha is a complicated organisation with many investors, so this is not a straightforward matter. Nothing has been finalised yet … the talks have not reached the investment stage.
It is also said that talks have started and that Mahindra could be rethinking its strategy after entering the two-wheeler market aggressively last year and then facing technical problems with its sole bike model — Stallio. A tie-up may now focus on technology or a licensing agreement.
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