Tokyo: The world’s second largest motorcycle maker, Yamaha Motor Co., will set up a joint venture with Mitsui and Co. to produce motorcycles in India.
Yamaha plans to replace its money-losing bike business—which has had losses since at least 2001, with the new venture called India Yamaha Motor Pvt. Ltd, the company said in a statement filed with the Tokyo Stock Exchange. The unit will begin operating in April.
The tie-up follows Mitsui, Japan’s second largest trading company, buying a 3% stake in Yamaha last year. It will take a 30% stake of total planned capital of Rs560 crore in the venture, which will use the factory and office facilities used by Yamaha Motor India at Surajpur near New Delhi.