M&M and Proton plan for a Joint Venture
Talks between Indian automotive giant Mahindra and Mahindra and Malaysian auto biggie Proton have started again, concerning the entry of the latter in the Indian Market. The two companies were in talks before this, in the year 2007. However the meeting bore no fruit and was unavailing. While the news about the two having a joint venture soon, has spread like wildfire, the spokesperson from M&M refused to comment on the same. However sources confirm that there is a good chance of a joint venture between the two companies.
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When looked at Proton's annual report, it clearly mentions the company's plans of trying its hands in the Chinese and the Indian auto market.It also revealed its plans on taking a step towards and focusing on regional markets with high growth in ASEAN with an aim to set up a Completely Built-Up (CBU) market and India, China and Iran to have a Completely Knock Down (CKD) market. Proton also looks at the Indian economy as a strong one since it was more adaptable and responsive to the world wide economic recession.
Mahindra on the other hand is expanding fast by exploring new markets. The company ended its JV with Renault to re-launch Logan with its own name. M&M has also taken over 50 percent stake in Reva Electric to manufacture electric cars to be launched in future. Another achievement that the company can boast of is the inception of the revamped Scorpio model in the US market, making it the first auto company to have its model on the American soil.
