Leading car manufacturer Mahindra & Mahindra and three-wheeler manufacturer Atul Auto Ltd are distinctly interested in taking a majority stake in PSU Scooters India Ltd, according to 2 sources in Mahindra and a top official in Atul Auto.
As per the reports, government intends to give upto 74% stake in Scooters India. Scooters India, where the government holds around 95%, posted a Rs 220 million loss in the earlier fiscal.
The company sold 2 wheelers having the brand names Vijai Super and Lambretta, stopped two-wheeler manufacturing in 1997. Mahindra is considering it to expand its three-wheeler portfolio, as per the company sources.
A spokeswoman for Mahindra refused to comment on the news. M&M, has around 11% market share in the three-wheeler sector. Last year it introduced Gio, an advanced model of its three-wheeler products with the aim of entering the semi-urban market.
Atul Auto which manufactures equivalent products as Scooters India, plans to use the latter’s technology and increase capacity, said Vijay Kedia director at Atul Auto.
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