The Hindu Business Line : Chinese co Lifan in talks for setting up bike unit in India

CHINESE mobike major Chongqing Lifan Industry is currently in negotiations with a few domestic companies to set up a joint venture to manufacture motorcycles in the country.

According to sources, players in the fray include a leading domestic auto components firm and two companies with current businesses unrelated to automobiles. Lifan's motorcycles manufacturing plant would be coming up in Manesar.

Sources said that Lifan had been close to finding a partner for the venture, but the process had been delayed with the company's plan to set up a wholly owned engine manufacturing unit in the country running into rough weather at the Foreign Investment Promotion Board (FIPB).

However, the proposal was cleared by the FIPB earlier this week. Lifan's motorcycle engine unit is coming up in Pune.

An official from Lifan had told Business Line earlier that the initial collective investments in both the plants would be to the tune of about Rs 250 crore.

The capacity at both the plants would be 100,000 units per annum each in the first phase. In addition to developing 125 cc and 150 cc bikes, Lifan also plans to subsequently make dual-wheel vehicles and motorboats at the plant.

More Stories on : Alliances & Joint Ventures | Two/Three Wheelers

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