NEW DELHI: Indian automaker Mahindra & Mahindra on Wednesday said that the company, along with external investors, will spend 8.75 billion rupees (USD 105 million) on its two-wheeler unit, Classic Legends, over the next two to three years.
Mahindra said in an exchange filing, the Scorpio, car manufacturer will invest USD 5.25 billion, and the remaining will come from existing shareholders and new investors.
Mahindra owns 60% of Classic Legends, which manufactures two-wheelers such as Jawa, Yezdi and BSA.
It is not immediately clear who the other investors are.
This investment comes at a time when the premium Indian motorcycle market is seeing aggressive priced models from international companies like Harley-Davidson and Triumph through local partnerships with Hero MotoCorp and Bajaj Auto.
While Classic Legends have revived traditional brands like Yezdi and Jawa, they have not been able to penetrate the premium segment, which is largely dominated by Eicher Motor's Royal Enfield.
Classic Legends will use this investment to build a strong business in India's fast-growing premium motorcycle segment in India, Mahindra said, without elaborating.