In a significant development for the motorcycle manufacturing industry, Yamaha has made an official announcement regarding a planned change of ownership of Chongqing Jianshe Mechanical and Electric Co., Ltd. (CJMEC), a current partner in the Yamaha motorcycle manufacturing joint venture in China, known as Zhuzhou Jianshe Yamaha Motor Co., Ltd. (ZJYM). This change is scheduled to take place in November 2023.
- Under the terms of the agreement, ZJYM’s equity interest will be transferred to ZHEJIANG CFMOTO POWER CO., LTD. (CFMOTO).
- The new entity resulting from this transition will be named Zhuzhou CF Yamaha Motor Co., Ltd. (ZCYM). Currently, ZCYM boasts a workforce of approximately 500 employees.
The ownership distribution in ZCYM will be as follows: CFMOTO will hold a 50 percent share, Yamaha will maintain a 44.23 percent share, and the remaining 5.77 percent will be held by Tair Yea Limited.
Yamaha views China as one of its crucial production and sales bases and considers this change in ownership as part of its strategy to enhance competitiveness. The company intends to engage in discussions with CFMOTO to determine the future direction of their joint venture with the goal of further elevating their competitive edge within the market.
This development not only has implications for Yamaha but also signifies a significant shift within the global motorcycle industry. CFMOTO, which already maintains a close working alliance with KTM, will now further solidify its position within the industry through this alliance with Yamaha.
The collaboration between CFMOTO and Yamaha is expected to have a positive impact on the industry landscape, with potential benefits for both companies and motorcycle enthusiasts worldwide.
As November 2023 approaches, all eyes will be on Zhuzhou CF Yamaha Motor Co., Ltd. (ZCYM), as it sets out on this new chapter in its journey, with the hopes of continued success in the ever-evolving motorcycle market. Stay tuned for further updates on this development and its implications in the coming months.