Modenas and Kawasaki in RM79.98 million RRPT deal

Modenas CT115

Modenas, otherwise known as DRB-Hicom’s Motosikal Dan Enjin Nasional (National Motorcycle and Engine) division has entered into a recurrent related party transactions (RRPT) with Kawasaki Heavy Industries of Japan, worth RM79.98 million.

As reported by Bernama, DRB-Hicom said the RRPT includes the provision of technical support, payment of royalties and supply of completely-knocked-down components for motorcycles by Kawasaki to Modenas. Concurrently, Modenas will also supply motorcycle components to Kawasaki.

In a filing with Bursa Malaysia, DRB-Hicom reported that the RRPT is necessary for day-to-day operations, and is in the normal course of business for Modenas. “The RRPT is entered into at arm’s length basis and on normal commercial terms which are not more favourable to the related party than those generally available to the public,” as detailed in the filing.

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Mohan K Ramanujam

Coming with diverse and extensive experience in heavy engineering, Mohan enjoys making anything with wheels go fast, especially motorcycles. His weapon of choice is the Desmoquattro engine, and he has a penchant for anything with a dash of Italian design. Strangely enough, he insists he's a slow rider.

 

Comments

  • Rahim on Apr 15, 2016 at 12:06 pm

    So now it just like Perodua, rebadge Kawasaki model? I dont mind..as long we can get cheaper Kawa bike with Modenas badge. And really Modenas should start produce high performance bike. 250 cc at least.

    Like or Dislike: Thumb up 24 Thumb down 1
    • alldisc on Apr 15, 2016 at 3:57 pm

      I used to working with Kawasaki HQ. There is something that we need to understand the MoU between the 2 companies. Firstly, Kawasaki agrees to let modenas sell it’s models below 250cc as rebadge motorcycles and to provide technical expertise. Due to that aspect Kawasaki will not sell anything that competes directly with modenas. But on the other hand Modenas is not allowed to produce any bike more than 200cc which can jeopardise Kawasaki sales in Malaysia.

      Like or Dislike: Thumb up 23 Thumb down 0
      • Macai on Apr 15, 2016 at 4:24 pm

        Well it is gonna be another brilliant agreement signed by Malaysian. It shows the greatness of Malaysian business power.

        Like or Dislike: Thumb up 5 Thumb down 1
      • Redidiot on Apr 15, 2016 at 8:07 pm

        200cc? Hey that should pretty peppy. Imagine the RR150 frame stuffed with a 200cc EFI single.

        Like or Dislike: Thumb up 1 Thumb down 1
      • alldisc on Apr 16, 2016 at 8:39 pm

        Actually in my honest opinion, Modenas is already 20 yrs old. It should be by now capable to manufacture it’s own bikes already. Kapcai does not necessarily need a high tech engine which has 4 valve dohc head or vvti. Or efi. Research is not expensive either. Almost all parts can be sourced locally. From battery to alloy wheels. Need not depending on Kawasaki anymore. By being independent, modenas will be capable of producing something like a 250cc or 400cc bike.

        Like or Dislike: Thumb up 11 Thumb down 0
  • Bring back Jagung please…

    Like or Dislike: Thumb up 13 Thumb down 0
  • Ayah nuan nuan on Apr 15, 2016 at 3:17 pm

    250cc scooter please…

    Like or Dislike: Thumb up 10 Thumb down 0
  • Ollie on Apr 18, 2016 at 3:31 pm

    First, know what’s a RRPT – its signed because Kawasaki (KW) owns 20% of Modenas. Modenas is basically KW’s CKD distributor of small bikes in Malaysia. Nothing more, nothing less. Of course, not at all like PROTON – the scum of Malaysia.

    Like or Dislike: Thumb up 2 Thumb down 2
  • Chris on Apr 19, 2016 at 10:51 am

    Erm… What happened to the Teh Tarik Racer 200? Forever a concept?

    Like or Dislike: Thumb up 3 Thumb down 0
 

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