Barely a month after its acquisition of Kinetic Motors, Mahindra & Mahindra is further looking for global alliances and acquisitions to enhance its two-wheeler business.
?We are open to all possible alliances, which could be technological partnership or acquisition, to strengthen our two-wheeler business,? Pawan Goenka, president (automotive business), M&M said on the sidelines of ACMA annual convention. Goenka said that the company is looking for buy-outs in China and South East Asia for low-end bikes and at Europe for high-end motorcycles.
?The alliances and acquisition strategy was part of our plan to get a head start in the two-wheeler business,? he said, adding that the Rs 110 crore acquisition of Kinetic has given M&M a good starting point and that the company is looking to enhance it further.
?We are in discussions with Taiwan-based Sanyang Motors, which is an investor in Kinetic Motors, for technical collaboration,? he said without divulging on the funds that the company has earmarked for acquisitions.
The acquisition, which will eventually lead to a formation of a new company in which Kinetic Motors’ will hold 20% stake while the rest will be held by M&M, will enable Mahindra to design and market a range of scooters, value engineered motorcycles and high-end motorcycles for the Indian and global markets.
Within the overall two-wheeler strategy, scooters will form M&M’s entry point into the Indian market and will be an important part of the company’s overall two-wheeler product portfolio.
The utility vehicle major’s recent foray into the two-wheeler segment was part of its strategy to expand its range in personal transportation. The company has presence in utility vehicles, three-wheeler and farm equipment.The $6.7-billion Mahindra Group is the market leader in multi-utility vehicle segment in India with Scorpio and Bolero as its most sold out modelsA year ago, the company had made its debut in passenger car segment with the launchof Logan in association with Renault.
The company sold 6001 units of Logan during the April-July period this year as compared to 8,057 units during the same period last year.
