Mahindra & Mahindra India's largest and utility vehicle maker, has finally fulfilled its long time dream to have a presence in the two-wheeler market. M&M has bought an 80 per cent stake in Kinetic Motor Company. Kinetic still continues to hold the balance stake in the company. Kinetic has been witnessing a steady decline in sales for last few years, ever since motorcycles have dominated the sector and suffering losses. Now with M&M coming on board, the company will get the much needed financial boost and return to the market with newer products.
M&M has been trying different options to enter into the Indian two wheeler market since the last few years. The company was first trying to join hands with a Chinese company, but when that did not work out, it considered buying the assets of the now defunct LML and then it even tried building its own scooter. However, with the acquisition of the assets of Kinetic, M&M is geared for the two wheeler segment. Anand Mahindra, vice chairman, M&M said, "Kinetic Motor is a strategic fit with our overall two wheeler strategy and the acquisition gives us an opportunity to emerge as a full range player with a presence in almost every segment of the automobile industry."
