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New Delhi, Dec. 8
Chinese two-wheeler major Chongqing Lifan is learnt to be in advanced level talks with Mahindra & Mahindra to set up a two-wheeler manufacturing joint venture in the country.
According to sources, the two companies have held a series of meetings to finalise the modalities of the tie-up.
Sources added that M&M might in the first stage only provide infrastructural support, without extending its own brand to the two-wheelers. The bikes are likely to be manufactured at M&M's existing three-wheeler facility in Haridwar.
When contacted for its response on the issue, an M&M spokesperson said that the company would not like to comment on the issue.
Lifan has been evaluating an entry into India for two years now and has already received permission from the Foreign Investment Promotion Board to set up engine and motorcycle manufacturing facilities.in the country.
The company currently sells its two-wheelers in 105 countries. Sources added that Lifan has already procured a nod from ARAI (Pune) for its two-wheeler engines.
Another Chinese motorcycle manufacturer, Zongshen Motorcycle Company, has tied up with the Salim Group for its two-wheeler project in West Bengal.