Mitsui ties up with Axis Bank to finance Yamaha bikesMitsui ties up with Axis Bank to finance Yamaha bikes in India
Apnaloan.com Research Bureau
11 Apr 2008
Mitsui and Co. Ltd is starting a venture with Axis Bank Ltd to finance Yamaha bikes in India.
The company on March 5th, 2008 signed a deal with Yamaha Motor Co. Ltd to set up a company to make motorcycles in India in April.
Mitsui will own a 64 per cent stake in the company and Axis Bank 26 per cent, while the remaining 10 per cent ownership will remain with Yamaha.
The joint venture is likely to be christened Bussan Auto Finance Ltd. Mitsui's Indonesian arm of auto finance is called P.T. Bussan Auto Finance (Indonesia). Bussan will finance only Yamaha bikes in India.
As reported by Mint, according to a senior ICICI Bank official, the two-wheeler finance market in India is worth about Rs.12,600 crore. ICICI Bank Ltd and Centurion Bank of Punjab, that was recently acquired by HDFC Bank Ltd, are so far the major players in the market.
However, other banks, including Axis Bank, also provide two-wheeler loans, although in a smaller way.