M&M may enter two-wheeler segment

Mahindra & Mahindra, India’s largest utility vehicle and tractor maker, indicates that it may foray into the two-wheeler segment. The company did not deny its talk with Kinetic Motor, the fourth-biggest motorcycle and scooter maker for a strategic buy out of stake. “We will always look for new areas especially if it is transportation,” said Anand Mahindra, group vice-chairman, Mahindra & Mahindra. He declined to comment anything specific on the talks with Kinetic. India has a strong 7.2-million two-wheeler market. M&M could buy a strategic stake in Kinetic for Rs110 crore (US$25.67 million), said a source familiar with the development. (May 29, 2008)