Honda and Yamaha Contemplating To Join Forces For Scooter Development

Native-born outfits, Honda Motor Co Ltd and Yamaha Motor Co Ltd have made an announcement of joining their forces to develop scooter for their domestic audience. The biggest decision has been taken on Wednesday after ending decades-old rivalry to create possibilities in the scooter segment. As the ever evolving two wheeler industry now keeping fewer chances in the motorcycle segment. In contrast to this, the duos come forward to produce A-Class scooters only in 50cc displacement.

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The major reasons behind this pronounced partnership are the increased costs to evolve new scooter technologies and to make equilibrium with the fasten emission norms and scooter sales downfall.

Honda operating officer Shinji Aoyama shares its views on this delicate issue, “The slowdown in the scooter market seen in the past few years has made business in the sector very difficult for both companies, so partnering will have merits.”

Waiting for the approval, the contract states, Honda- the world’s largest selling motorcycle brand will produce Yamaha’s 50-cc scooters at its southern Japan-based manufacturing plant by the end of 2018. The TACT and Giorno are the considered models to be manufactured and further will be renamed as the JOG and Vino by the Yamaha. Basically, both the companies are already in collaboration with the Honda Benly/Yamaha Gear on another similar contract. But this new fixation will be brought up the Honda as an OEM (original equipment manufacturer) supplier in the coming future.

If considers Indian market, there is nothing new in making JV by these Japanese giants. As the Honda two wheeler was already in collaboration with India’s largest selling two-wheeler brand, Hero Motocorp and with the Kinetic too, when it landed on the Indian soil. Well, the chances that this JV will work for India and the already flooded country’s market in different scooter segment will be affected with this JV.

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