M&M Along With Others To Invest Rs 875 Crore In Two-wheeler Subsidiary

Mahindra and Mahindra, the automotive giant in India, announced a significant investment of Rs 875 crore ($105 million) in its two-wheeler subsidiary, Classic Legends.

The substantial infusion of capital, with Mahindra contributing Rs 525 crore, aims to propel Classic Legends into the competitive landscape dominated by brands like Royal Enfield. Mahindra currently holds a 60% stake in Classic Legends, renowned for manufacturing iconic two-wheelers such as Jawa, Yezdi, and BSA.

While the details of the additional investors remain undisclosed, this investment comes amid a surge in aggressively priced models from international giants like Harley-Davidson and Triumph. These companies have entered the Indian premium motorcycle market through strategic partnerships with domestic players such as Hero MotoCorp and Bajaj Auto.

Despite Classic Legends successfully resurrecting heritage brands like Yezdi and Jawa, their previous endeavours fell short of making a substantial impact on the premium segment, primarily dominated by Royal Enfield. The new investment is expected to empower Classic Legends to mount a formidable challenge in the fast-growing premium motorcycle sector.

Mahindra's commitment to infuse capital over the next two to three years underscores their vision to establish Classic Legends as a major player in the Indian premium motorcycle market. While specific details about the utilization of funds are yet to be disclosed, the investment is anticipated to be channelled towards product development, marketing initiatives, and expanding the brand's presence across the country.

*Inputs from Reuters*