Yamaha is investing Rs 250 crore to set up a new subsidiary in India. Yamaha plans to not only use this subsidiary to import its high-end super bikes and speciality vehicles like snow mobiles, golf carts and all terrain vehicles into India, it also plans to forge local partnerships through the new entity. Yamaha has indicated it will pump in Rs 500 crore in the new subsidiary in two years.
In its application to the government, Yamaha has indicated that it is “currently in the process of identifying a partner for the proposed subsidiary company”.
The partner, it said, “may be an Indian or foreign entity and may subscribe up to 30% of the equity share capital” of the new subsidiary. The details of the new partnership will be submitted once the partner is “identified and finalised” said the application. Yamaha was, at one point, seriously talking to Bajaj Auto for a possible alliance in the motorcycle segment. However, industry sources say, those discussions are currently on the back burner.
According to the proposal, the new subsidiary will make, market and export two-wheelers and parts, import two-wheelers and parts not made in India and import other products from its global portfolio like all terrain vehicles, outboard motors, snow mobiles, generators, multi-purpose vehicles, water pumps, electric hybrid bicycles, racing and golf carts.
Yamaha has already announced it will launch two super bikes from its global stable in India in fully-imported form. These are the R1 and MT01. So far, Yamaha has invested just short of Rs 1,700 crore in India. Two years ago, the company bifurcated its operations into two subsidiaries - Yamaha Motor India for manufacturing and Yamaha Motor India Sales for marketing.