Two and three wheeler major TVS Motor on Thursday reported an increase of 40 percent in its net profit for the second quarter of the current fiscal at Rs.76.51 crore from Rs.54.78 crore in the like period of 2010-11.
The company's total income for the period under review reported a growth of 23.23 percent at Rs.1,991.79 crore as against Rs.1,616.24 crore in the corresponding period of last fiscal.
The net sales in the July-September quarter rose 22.79 percent by Rs.1,952.16 crore as compared to Rs.1,589.83 crore in the like period of 2010-11.
The auto majors other income increased by 50.05 percent at Rs.39.63 crore from Rs.26.41 crore in the July-September quarter of last fiscal.
The company also reported an increase of 42.20 percent in its consolidated total income for the fiscal at Rs.135.31 crore from Rs.95.15 crore in the like period of 2010-11.
The total income for the fiscal stood at Rs.3,737.82 crore, an increase of 24.21 percent when compared to Rs.3,009.20 crore in the corresponding period of last fiscal.
HeroMoto leads in Oct sales after shedding Honda
Riding high on rural demand, Hero continued its brisk monthly sales of 500,000 two-wheelers for the past 12 months despite the breakup with Japanese partner Honda and name change. Honda after the breakup is gearing up to add fresh capacity each month at its second facility in Rajasthan to push up its sales.
Hero MotoCorp sold 3.58 million two-wheelers between April and September 2011, growing 19 per cent, while Honda Motorcycle and Scooter India grew 14 per cent at 1.10 million units during same period. However, Honda is set to outpace Hero MotoCorp in sales growth rate this financial year.
While Honda’s capacity expansion in Rajasthan has increased its monthly output to 178,000 units in October 2011 from 136,000 in April 2011, Hero’s capacity has remained at around 500,000 units per month over the past year.
“Our monthly production will reach 195,000 to 200,000 units per month by March 2012. Since last year, we are selling all we make and will continue to do so with an aim to bring down the waiting period on Activa, Shine and Unicorn,” a senior HMSI official said. Hero, on the other hand, has not made any immediate capacity addition announcement for 2011-12.
Hero MotoCorp aims to finish with sales of around six million units compared with 5.4 million units last fiscal, while HMSI aims to make and sell 2.1 million units against last year’s 1.55 million. While Hero MotoCorp’s sales growth at this rate would end up being around 11 per cent, Honda’s growth due to fresh capacity in coming months would be around 35.48 per cent.
According to Abdul Majeed, auto practice leader at PwC, growth will continue to come for both HMSI and Hero Honda, which changed its name to Hero MotoCorp on August 9 this year due to strong underlying potential of two-wheeler market. “People are really not looking at alliances involved in a product but the product as a whole apart from customer requirement. Whichever company focuses on these two, will always have market share and growth,” Majeed added.
Hero MotoCorp sold 3.58 million two-wheelers between April and September 2011, growing 19 per cent, while Honda Motorcycle and Scooter India grew 14 per cent at 1.10 million units during same period. However, Honda is set to outpace Hero MotoCorp in sales growth rate this financial year.
While Honda’s capacity expansion in Rajasthan has increased its monthly output to 178,000 units in October 2011 from 136,000 in April 2011, Hero’s capacity has remained at around 500,000 units per month over the past year.
“Our monthly production will reach 195,000 to 200,000 units per month by March 2012. Since last year, we are selling all we make and will continue to do so with an aim to bring down the waiting period on Activa, Shine and Unicorn,” a senior HMSI official said. Hero, on the other hand, has not made any immediate capacity addition announcement for 2011-12.
Hero MotoCorp aims to finish with sales of around six million units compared with 5.4 million units last fiscal, while HMSI aims to make and sell 2.1 million units against last year’s 1.55 million. While Hero MotoCorp’s sales growth at this rate would end up being around 11 per cent, Honda’s growth due to fresh capacity in coming months would be around 35.48 per cent.
According to Abdul Majeed, auto practice leader at PwC, growth will continue to come for both HMSI and Hero Honda, which changed its name to Hero MotoCorp on August 9 this year due to strong underlying potential of two-wheeler market. “People are really not looking at alliances involved in a product but the product as a whole apart from customer requirement. Whichever company focuses on these two, will always have market share and growth,” Majeed added.
Yamaha hopes to meet sales target in 2011
The Indian two wheeler market which is dominated by three Indian manufacturers namely Bajaj, Hero Honda and TVS will now see competition from Japanese bike manufacturer Yamaha and Honda, with Suzuki also gaining ground. Though Honda has much bigger plans, the Indian subsidiary of Yamaha Motors, India Yamaha Motor has targeted a sale of 1mn units in a few years time.
The Managing Director and CEO of the company, Hiroyuki Suzuki, said that they are planning to make an investment of $10mn in India by 2012, for expanding their capacity and extending their reach in the smaller cities by providing high end products to meet this target. He also said that they intend to introduce Yamaha scooters in the market by next year.
He said that they will be sharing more details soon. The definitely see their venture into this category as something, which will help strengthen their position in this market. they hope that their entry into this category will offer impetus for boosting their sales along with increasing their market share.
He said, explaining their market strategy to achieve their 10% sales target that they will introduce high end models as they are performing well in deluxe and luxury categories where they have set a target of 20% by year end. They are also witnessing an increasing demand for these products in B to C segment towns, as well as rural markets. They have set a target of selling 1mn models in two years time and investing $10mn by next year for increasing their capacity and the development of new products.
He also mentioned about achieving their 14% market share target in the deluxe category in the past two months. Regarding the company’s third proposed facility, he said that they already have plants in Surajpur, Uttar Pradesh and in Faridabad Haryana. Their plant at Surajpur has a production capacity of 600,000 bikes per annum, that can be further expanded to 1mn units per annum, whereas their plant in Faridabad manufacturers auto components and engines, because of which they do not feel the need to open a third facility. However, he said that they would begin planning for a third facility by year end.
The Managing Director and CEO of the company, Hiroyuki Suzuki, said that they are planning to make an investment of $10mn in India by 2012, for expanding their capacity and extending their reach in the smaller cities by providing high end products to meet this target. He also said that they intend to introduce Yamaha scooters in the market by next year.
He said that they will be sharing more details soon. The definitely see their venture into this category as something, which will help strengthen their position in this market. they hope that their entry into this category will offer impetus for boosting their sales along with increasing their market share.
He said, explaining their market strategy to achieve their 10% sales target that they will introduce high end models as they are performing well in deluxe and luxury categories where they have set a target of 20% by year end. They are also witnessing an increasing demand for these products in B to C segment towns, as well as rural markets. They have set a target of selling 1mn models in two years time and investing $10mn by next year for increasing their capacity and the development of new products.
He also mentioned about achieving their 14% market share target in the deluxe category in the past two months. Regarding the company’s third proposed facility, he said that they already have plants in Surajpur, Uttar Pradesh and in Faridabad Haryana. Their plant at Surajpur has a production capacity of 600,000 bikes per annum, that can be further expanded to 1mn units per annum, whereas their plant in Faridabad manufacturers auto components and engines, because of which they do not feel the need to open a third facility. However, he said that they would begin planning for a third facility by year end.
Racing instinct - Yamaha R15 Version 2
With its confidence-inspiring handling, better power delivery and incredible stability, will Yamaha R15 V2.0 re-ignite the passion amongst sportsbike riders?
Millimetres away from scrapping the tarmac and sideslip angles that can boggle a mathematician, nothing comes quite close to the experience of riding the Yamaha R15. This is a treat for all the senses for sportsbike riders. The light, high-tech motorcycle is one mean package, twisting, turning and accelerating like a laser-guided missile. Yamaha's new YZF-R15 version 2.0 feels every bit as good as its predecessor. With its ‘Racing instinct' philosophy firmly in place, powering it around the Madras Motor Sports Track makes one wonder how much better can it possibly be than its elder brother. Can it re-ignite the passion amongst sportsbike riders as the original did?
A few more changes and Yamaha could have called the R15 an all-new bike, that's how extensive the list of changes is. Firstly, look at the twin-headlight units straight in the eye and you won't be able to tell the V2.0 apart from the older one. Now take one step to the side and the changes spring out at you. The mid-fairing is beefier and has nice slotted vents that Yamaha claims improve aerodynamic efficiency by four per cent. There's a stylish new side panel that almost seems a part of the frame. The R15 also boasts a new waspishly high, split-seat.
Go around to the rear and you'll see the new R6-inspired tail-lamp pressed into the higher tail section. This sharper-looking LED unit has shaved 100 grams as well. Below this is a nicely machined frame, holding the number plate and the turn indicators. Like the tail section, the exhaust end has been angled more aggressively. To keep you and the bike from getting dirty in the monsoons, there's an elaborate new hugger for the rear wheel and a sari guard for added safety.
Look closer, and the finer changes become apparent. The R15 looks longer, for its wheelbase has been stretched by 55mm, and that's down to the new aluminium swingarm, a first in this class. Completing the new muscular-looking rear is a bigger tyre. Hidden under the hugger, wrapped around a stylish 10-spoke alloy wheel is a 130/70 x 17-inch radial tyre, while the front also gets meatier 90/80 x 17-inch rubber.
Overall gearing is taller, as the final drive ratios are now tweaked. To improve braking efficiency at both ends, the front disc has a bigger carrier to increase cooling, while the rear disc has been upgraded to 220mm.
The ECU stores a modified code that promises to improve throttle response. The cam that operates the throttle has also been altered for more linear response. Yamaha has unfortunately failed to add any power to the new model, and enthusiasts are sure to feel let down with the unchanged power and torque output. To make matters worse, the R15 V2.0 is heavier by 5kg.
Hop onto the YZF-R15 V2.0 and the riding position feels more track-focussed, the rider sitting in a more forward-set stance with more weight pushed to the front. The light buzz from the 149cc liquid-cooled motor is familiar as I head down the pitlane. The first couple of laps are spent familiarising myself with the new motorcycle and the circuit. It's immediately apparent the power delivery is now vastly improved. Unlike the earlier R15 that needed to be really wound up to get going, the V2.0 feels far more responsive, with a healthier bottom and mid-range to the power band. This will surely improve the R15's rideability out on public roads, a sore point on the earlier motorcycle. As speeds increase, it's clear that fears about a performance drop are unfounded. Instead, our test equipment confirms the new Yamaha as faster. Our best time proved the R15 V2.0 to be quicker to 60kph and 100kph from standstill by half a second, quicker than Yamaha's claimed 0.3 seconds.
Yamaha's ultra-stiff, steel fabricated Deltabox frame is the magic wand that grants the R15 rock-solid poise around corners, and a feline ability when changing directions.
It's a case of the best getting better, the longer aluminium swingarm having vastly improved stability. The difference wasn't so startling when blasting down the straights, but a big change was palpable when attacking corners. Sure, there's a small drop in flickability, but it's a sacrifice worth making for so much newfound in-corner stability. The R15 V2.0 oozes confidence, prodding you to ride harder and faster, assuring you there's nothing to worry about. The sportier riding position and greater weight bias towards the front gives the rider a more connected feel, which surely inspires greater confidence among new riders while more experienced riders will use the benefits to extract more pace from the R15.
A large chunk of the R15 V2.0's poise can also be attributed to the new MRF tyres. Grip when leaned over or under hard braking is now nothing short of magnetic. We found nothing but absolute commitment even when expecting rear wheel hop due to patchy, bumpy tarmac. With the speedo reading an indicated 123kph on the back straight, the braking could be left to the 50-metre mark without much drama. The bite from the front brake is hard to fault, always working nice and progressively.
There is no denying that the confidence-inspiring handling, better power delivery and incredible stability make the Yamaha R15 V2.0 a significantly better motorcycle. Those taking this mean machine on the roads are aware of the R15's shortcomings and will have just as much to complain about, save for the better power delivery and muscular new rear section. Having to pay an extra couple of thousands for the upgraded model despite it gaining no additional power might not go down well with the buyers. Yamaha really should have plonked in a more powerful engine to match the extraordinary dynamics of the R15 V2.0.
Millimetres away from scrapping the tarmac and sideslip angles that can boggle a mathematician, nothing comes quite close to the experience of riding the Yamaha R15. This is a treat for all the senses for sportsbike riders. The light, high-tech motorcycle is one mean package, twisting, turning and accelerating like a laser-guided missile. Yamaha's new YZF-R15 version 2.0 feels every bit as good as its predecessor. With its ‘Racing instinct' philosophy firmly in place, powering it around the Madras Motor Sports Track makes one wonder how much better can it possibly be than its elder brother. Can it re-ignite the passion amongst sportsbike riders as the original did?
A few more changes and Yamaha could have called the R15 an all-new bike, that's how extensive the list of changes is. Firstly, look at the twin-headlight units straight in the eye and you won't be able to tell the V2.0 apart from the older one. Now take one step to the side and the changes spring out at you. The mid-fairing is beefier and has nice slotted vents that Yamaha claims improve aerodynamic efficiency by four per cent. There's a stylish new side panel that almost seems a part of the frame. The R15 also boasts a new waspishly high, split-seat.
Go around to the rear and you'll see the new R6-inspired tail-lamp pressed into the higher tail section. This sharper-looking LED unit has shaved 100 grams as well. Below this is a nicely machined frame, holding the number plate and the turn indicators. Like the tail section, the exhaust end has been angled more aggressively. To keep you and the bike from getting dirty in the monsoons, there's an elaborate new hugger for the rear wheel and a sari guard for added safety.
Look closer, and the finer changes become apparent. The R15 looks longer, for its wheelbase has been stretched by 55mm, and that's down to the new aluminium swingarm, a first in this class. Completing the new muscular-looking rear is a bigger tyre. Hidden under the hugger, wrapped around a stylish 10-spoke alloy wheel is a 130/70 x 17-inch radial tyre, while the front also gets meatier 90/80 x 17-inch rubber.
Overall gearing is taller, as the final drive ratios are now tweaked. To improve braking efficiency at both ends, the front disc has a bigger carrier to increase cooling, while the rear disc has been upgraded to 220mm.
The ECU stores a modified code that promises to improve throttle response. The cam that operates the throttle has also been altered for more linear response. Yamaha has unfortunately failed to add any power to the new model, and enthusiasts are sure to feel let down with the unchanged power and torque output. To make matters worse, the R15 V2.0 is heavier by 5kg.
Hop onto the YZF-R15 V2.0 and the riding position feels more track-focussed, the rider sitting in a more forward-set stance with more weight pushed to the front. The light buzz from the 149cc liquid-cooled motor is familiar as I head down the pitlane. The first couple of laps are spent familiarising myself with the new motorcycle and the circuit. It's immediately apparent the power delivery is now vastly improved. Unlike the earlier R15 that needed to be really wound up to get going, the V2.0 feels far more responsive, with a healthier bottom and mid-range to the power band. This will surely improve the R15's rideability out on public roads, a sore point on the earlier motorcycle. As speeds increase, it's clear that fears about a performance drop are unfounded. Instead, our test equipment confirms the new Yamaha as faster. Our best time proved the R15 V2.0 to be quicker to 60kph and 100kph from standstill by half a second, quicker than Yamaha's claimed 0.3 seconds.
Yamaha's ultra-stiff, steel fabricated Deltabox frame is the magic wand that grants the R15 rock-solid poise around corners, and a feline ability when changing directions.
It's a case of the best getting better, the longer aluminium swingarm having vastly improved stability. The difference wasn't so startling when blasting down the straights, but a big change was palpable when attacking corners. Sure, there's a small drop in flickability, but it's a sacrifice worth making for so much newfound in-corner stability. The R15 V2.0 oozes confidence, prodding you to ride harder and faster, assuring you there's nothing to worry about. The sportier riding position and greater weight bias towards the front gives the rider a more connected feel, which surely inspires greater confidence among new riders while more experienced riders will use the benefits to extract more pace from the R15.
A large chunk of the R15 V2.0's poise can also be attributed to the new MRF tyres. Grip when leaned over or under hard braking is now nothing short of magnetic. We found nothing but absolute commitment even when expecting rear wheel hop due to patchy, bumpy tarmac. With the speedo reading an indicated 123kph on the back straight, the braking could be left to the 50-metre mark without much drama. The bite from the front brake is hard to fault, always working nice and progressively.
There is no denying that the confidence-inspiring handling, better power delivery and incredible stability make the Yamaha R15 V2.0 a significantly better motorcycle. Those taking this mean machine on the roads are aware of the R15's shortcomings and will have just as much to complain about, save for the better power delivery and muscular new rear section. Having to pay an extra couple of thousands for the upgraded model despite it gaining no additional power might not go down well with the buyers. Yamaha really should have plonked in a more powerful engine to match the extraordinary dynamics of the R15 V2.0.
Bajaj Auto's sales up 7% in October at 3,95.274 units
Bajaj Auto 's sales in October rose 7% year-on-year to 3,95,274 units, its highest ever for any October.
However, sequentially sales were down over 5% from the 4,17,686 units it sold in September. Bajaj Auto said it lost production of 25,000 motorcycles at its plant in Pantnagar due to the curfew imposed in early October, and that in turn hurt sales. Curfew had been imposed in the Pantnagar area of Uttarakhand state due to violence in Rudrapur town, affecting production of several companies in the region.
In October, Bajaj Auto sold 3,51,083 motorcycles, up 6% from a year ago, and 44,191 commercial vehicles [three wheelers], up 8% year-on-year, it said Wednesday. The company sold 10,000 units of the recently launched Boxer motorcycle in October.
Bajaj Auto expects November sales will be healthy and sees a run rate of 4 lakh vehicles per month to resume from next month.
Its exports surged 20% year-on-year to 1,31,948 units during October. Bajaj Auto has been seeing strong growth in its exports, especially to Africa. The company is already selling more three-wheelers overseas than in India.
Managing Director Rajiv Bajaj had said last month that total sales outside India would outstrip domestic numbers in future as market size overseas was four times that of India and there was immense potential to grow.
Over the April-October period, Bajaj Auto’s exports were up 33% year-on-year to 9,83,446 units. Its total sales were up 15% to 26,52,226 units over the same period.
While motorcycle sales rose 15% to 23,41,491 units in April-October, commercial vehicle sales were up 20% to 3,10,735 units, Bajaj Auto said.
Meanwhile, Bajaj Auto raised prices by Rs 500 per unit from October 1 and doesn't any more price hikes till the year-end.
Bajaj Auto shares were up 1.1% at Rs 1,733 on NSE in morning trade on Wednesday.
However, sequentially sales were down over 5% from the 4,17,686 units it sold in September. Bajaj Auto said it lost production of 25,000 motorcycles at its plant in Pantnagar due to the curfew imposed in early October, and that in turn hurt sales. Curfew had been imposed in the Pantnagar area of Uttarakhand state due to violence in Rudrapur town, affecting production of several companies in the region.
In October, Bajaj Auto sold 3,51,083 motorcycles, up 6% from a year ago, and 44,191 commercial vehicles [three wheelers], up 8% year-on-year, it said Wednesday. The company sold 10,000 units of the recently launched Boxer motorcycle in October.
Bajaj Auto expects November sales will be healthy and sees a run rate of 4 lakh vehicles per month to resume from next month.
Its exports surged 20% year-on-year to 1,31,948 units during October. Bajaj Auto has been seeing strong growth in its exports, especially to Africa. The company is already selling more three-wheelers overseas than in India.
Managing Director Rajiv Bajaj had said last month that total sales outside India would outstrip domestic numbers in future as market size overseas was four times that of India and there was immense potential to grow.
Over the April-October period, Bajaj Auto’s exports were up 33% year-on-year to 9,83,446 units. Its total sales were up 15% to 26,52,226 units over the same period.
While motorcycle sales rose 15% to 23,41,491 units in April-October, commercial vehicle sales were up 20% to 3,10,735 units, Bajaj Auto said.
Meanwhile, Bajaj Auto raised prices by Rs 500 per unit from October 1 and doesn't any more price hikes till the year-end.
Bajaj Auto shares were up 1.1% at Rs 1,733 on NSE in morning trade on Wednesday.
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.
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.
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.
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.