Mahindra eyes technology partnerships for 2-wheelers

Mahindra Two-Wheelers Pvt. Ltd, which entered the motorcycle market in 2010 with the 106cc Stallio but stopped production because of technical glitches, is exploring a technology tie-up with Japan’s Yamaha Motor Co. and a technology studio, said two people familiar with the matter who declined to be identified.

Roy Kurien, national business head at India Yamaha Motor Pvt. Ltd, declined comment, as did a spokesperson for Mahindra Two-Wheelers. Anoop Mathur, president of the company, did not respond to phone calls.

“They entered aggressively in to the segment but the initial feedback made them rethink their strategy,” said one of the two persons mentioned above. “They have initiated talks with Yamaha, among others. However, it is not yet clear that what kind of a partnership will this turn out to be. It could be anything—a technology buyout or some sort of licensing agreement.”

The 106cc Stallio was launched in September last year and around 5,000 units were sold till January, when the company decided to halt supplies. It was priced at Rs.41,199 (ex-showroom, Pune). The company had also unveiled the Mojo, aimed at the premium luxury segment and priced at Rs.1.75 lakh. This bike, too, hasn’t hit the roads.

The second person mentioned above, who is involved in the discussions with Yamaha, said the Japanese company’s local investors are not in the favour of it selling technology to rivals here as the company has big plans of its own for India.

The Japanese parent has an agreement with Mitsui and Co. India Pvt. Ltd, a general trading company, to become a joint investor in Yamaha India. Mitsui officials could not be reached for comments.

“An association with Yamaha will give it (Mahindra two-wheelers) credibility in the market as it is a well-known fact that its technology does not come from some of the pioneers in the field,” said Pradeep Saxena, executive director at marketing research firm TNS Automotive.