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Regular-article-logo Tuesday, 17 June 2025

TVS FILES FOR EARLY DIVORCE 

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FROM OUR CORRESPONDENT Published 28.12.01, 12:00 AM
New Delhi, Dec. 28 :    New Delhi, Dec. 28:  Two-wheeler maker TVS Motor Co Ltd wants to break off ties with estranged foreign partner Suzuki Motor Corp by April next year, advancing the time-table for the disengagement by two years. Suzuki Motors originally had a technical and financial partnership with TVS to make motorcycles, that was supposed to run till 2007. However, in September, TVS and Suzuki said that they would end their 17-year alliance in 30 months, ending April 2004. Suzuki formally announced that it was pulling out of the venture after selling off its 25.97 per cent stake to TVS for Rs 90 crore. Suzuki Motor Corp gave 60 lakh equity shares of Rs 10 each at a price of Rs 15 to Sundaram Clayton Ltd (SCL) or its associates, through whom TVS holds a 32.47 per cent stake. The dignified announcement, which masked the tension that had been boiling over between the two partners for a couple of years, had said that TVS would be allowed to use the 'Suzuki' tag in the TVS-Suzuki brand name for another 30 months. Suzuki also agreed to refrain from introducing its motorcycles either on its own or through a local partner. However, rumours were simultaneously doing the rounds that Suzuki was planning to bring out scooters with Kawasaki-Bajaj, the Pune-based two-wheeler maker. Kawasaki and Suzuki have an alliance in overseas markets and the speculation was that they would forge ties in India as well. As part of its understanding with TVS, Suzuki Motor was supposed to supply technology and model variants for TVS' latest model - the Fiero - and spare parts for other products.    
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