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MAN pops out for an Indian
Page 8
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VAN curries favour in Asia with rumours that it has increased its stake
in a firm on the sub-continent. Oliver Dixon reports.
MAN LOOKS SET for a shopping spree with rumours circulating about a purchase of 14% of its Indian licencee Bajaj Tempo The German manufacturer certainly has the buying power; its net income rose by 68% last year, reversing a three-year decline, and its recent alliance with Navistar has opened up the North and South American markets.
Investment in India is especially significant at present: its CV market is growing by more than 30% a year and most of the other global CV firms have been quick to buy into this success.
A deal with MAN would certainly be welcomed by Bajaj Tempo. The Indian manufacturer lags some way behind the now globally reckoned Tata-Daewoo operation and MAN's expertise would benefit it considerably.
On the other hand firms in the region are increasingly targeting the European marketplace for expansion.
However,with the sky-high cost of setting up and servicing a dealer network it is easier to buy into an existing network than to set one up from scratch.
In that light MAN's investment in Bajaj Tempo might serve to protect the Indian firm against a hostile takeover bid from one of the growing group of globalising manufacturers from the emerging markets.