Can Yamaha and Bajaj come togather in India?

After Kawasaki, could a Yamaha-Bajaj alliance be in the offering? While loss-ridden Yamaha doesn’t deny the possibility, it is giving the Indian market a last shot.Yamaha plans to put in another Rs 800 crore and may churn out a 250 cc bike at the next Auto Expo.In the pipeline, is to create a niche market in the 200 to 250 cc category. Yamaha is also exploring the possibility of hitting the market with high-end performance bikes.

Inpsite of six tough, loss-ridden years, Japan’s Yamaha refuses to exit India. Denying the reports, Yamaha’s new Managing Director, T Ishikawa, better known as the man who turned around Yamaha’s Thai operations says the company is in the process of realigning its India strategy.  He was quoted as  “When I joined in Thailand, things were just like what they are in India. Cost and features is what they looked at then i introduced unique models , created niche market. All we did was tried to sell lifestyle not just product.”

So, its official now, Yamaha is not exiting the Indian market. In fact, they have adopted a new startegy for Indian market – they are pumping in Rs 800 crore over the next four years and will ramp up the capacity from the existing 3 lakh units to 10 lakh units by 2010.

While Yamaha is giving India another shot, the market is abuzz with rumours of a possibility of a Bajaj – Yamaha alliance. While the company has not denied a possible tie-up, the timing may be bit premature.

The other company producing hi-end bikes in India is Hero Honda with its Karizma.