Mahindra-Kinetic JV gets going

Utility vehicle manufacturer Mahindra & Mahindra has kickstarted its joint venture with two wheeler manufacturer Kinetic Scooters and Motorcycles Ltd.

According to the company, the joint manufacturing operations have gone on stream at the Pithampur facility oin Maharashtra. The new JV came into being after M&M bought a controlling stake in the Pune-based two-wheeler manufacturer Kinetic.

Sources said the deal was to the tune of Rs 110 crore. The deal which was inked during July-August last year, made it possible for new initiatives such as a re-launch the Kinetic range of scooters. It s expected that the new Kinetic range which will all be revamped will hit the market under the Mahindra-Kinetic co-branding.

Kinetic sources said that its scooters will continue to be rolled out of the assembly line at Pithampur plant . There will be no change in price tags too. The new venture plans to revamp and reintroduce the Flyte 125 and Nova 135, and also the Blaze. Though the company has plans to reintroduce a revamp the Blaze model, it is also rumoured that the model, despite being India’s biggest and most powerful scooter, might be taken off the shelves as it has proved not to be a success. The joint venture plans to bring in these new revamped models to Kinetic showrooms, which will now be renamed and will sport a new logo.

The company is also likely to make an entry into the entry-level mass-market, with two-wheelers. With its Mahindra-Kinetic products, M&M is said to be looking at focusing on entry-level mass-market two-wheelers at present. It is also being said that there are plans to develop other products for the lifestyle segment in the future like high-end bikes among many others.