"Financing is a job of professionals and is best left to them. LML feels that its core competency is in making scooters and bikes and not providing finances. We are not keen on foraying in to retail financing and there is now move towards this end."

The Kanpur-based bi-wheeler major was earlier planning to set up a finance company for retail financing of its two-wheeler models. The company has initiated talks with several financial institutions in this regard and was seeking equity participation in the finance venture.

Besides helping finance LML vehicles, the venture was also proposed to provide bridge loans to LML dealers. Initially, the venture was planned to finance saleof LML new vehicles. Later, it was proposed that the venture be extended to finance sale of second hand vehicles which LML would get under its exchange schemes.

The finance company was proposed to be in place and operational before the launch of the company's new mobikes, which are now expected to hit the streets in September this year. The bikes will be produced under a technology transfer arrangement with Daelim Motor Company of South Korea. Four models would be introduced in the Indian market, carrying a price tag ranging between Rs 37,500 and Rs 45,000 ex-showroom (Delhi).