Mahindra CIE, the partnership formed by India-based Mahindra Group’s auto component manufacturing subsidiary Mahindra Systech and Spain-based industrial group CIE Automotive, is in talks with an auto parts provider and a trading firm, both from Japan, over establishing a tripartite venture that would invest in Southeast Asia, Mahindra CIE chairman Hemant Luthra has told LiveMint.
The joint venture is likely to be based in Thailand or Malaysia, as Mahindra CIE hopes to get a foothold in Southeast Asia through joint ventures and acquisitions, and win contracts in a market that is currently dominated by Japanese carmakers such as Honda, Suzuki and Toyota.
“As part of Mahindra CIE’s grand strategy, which includes drawing one-third of revenue each from Latin America, Southeast Asia and Europe, we are starting to explore mergers and acquisitions in Southeast Asia,” Luthra said.
Mahindra CIE is also in talks with three Indian companies involved in machining, composites and casting components respectively over a buyout. Both the tripartite venture and buyouts are likely to be concluded by the end of fiscal 2015.