Mahindra & Mahindra, the largest utility vehicle maker in the Indian market, is all set to invest heavily in its two-wheeler operations, in order to strengthen its grounds in the world’s fastest growing two-wheeler market India.
Speaking to ET, Mr. Anoop Mathur, president, two-wheeler division, Mahindra & Mahindra, said, "We have been in the two-wheeler industry and will continue to invest in it. Over the last couple of years, we have significantly strengthened our fundamentals like a cutting-edge R&D facility and upgraded manufacturing capacity."
The company is planning to invest Rs 500 crore in the two-wheeler business in India, which will be utilized in setting-up a new R&D centre in the Indian market. The new R&D centre, which is claimed to be the third largest R&D set-up in the Indian two-wheeler market, will be head by Mr. PS Ashok, who played a key role in the operations of LML in India. The company has already established a team of 160 engineers led by Mr. Ashok.
Following the acquisition of Kinetic Motors in year 2008 for Rs 100 crore, Mahindra & Mahindra has invested up to Rs 800 crore in this business; however, it is still incurring losses.