Mahindra and Mahindra (M&M) is optimistic that the scooter segment in India which it recently entered would provide sufficient opportunities for growth. The company bought the Kinetic Motor Company in 2008 and formed a new company called Mahindra Kinetic.
M&M Vice President (sales and customer care Dharmendra Mishra said: "The scooter industry is growing at a very fast rate and we see a good demand growth. We expect a double-digit growth in scooter industry this fiscal."
Scooter sales in India had declined in the past few years but soon started to bounce back. With demand increasing steadily from rural and semi urban areas, Mahindra and Mahindra is expecting its scooters will make a mark in the Indian scooter market.
Mahindra has also started building motorcycles starting with 125cc engined model. It is already exporting its two-wheelers to South East Asia and African countries. Mahindra currently has a production capacity of about five lakh units per year, it built 1.7 lakh units last year.
Despite Mahindra entering late in the two-wheeler market, it still enjoys a market share of 10 per cent according to Mr Mishra.