Will Mahindra buy Kinetic Motors

There is all this talk about Mahindra buying out kinetic motors.Why is an SUV manufacturer now suddenly interested in two wheelers.

Mahindra seem to be thinking on the lines of Honda here in believing that there may be a market for small affordable cars like the Nano but the market is even bigger for two wheelers.Not all prospective two wheeler buyers are going to head to a car showroom anytime soon and with rising oil prices and traffic congestion it is very likely car buyers would head towards two-wheeler showroom.

With kinetic motors mahindra also get automatic gearbox[CVT] technology remember Kinetic were to suplly gearboxes for the the Tata Nano.Mahindra could do well with automatic gearboxes and also since it is looking to be a global player in the gearbox field the kinetic buy would hold it in good stead.Also somehow two wheelers have escaped the environmentalists radar and for an SUV manufacturer that is good news.Also Mahindra could look at targeting its own UV customers with its two wheelers.But the biggest beneficiary would be present kinetic motors dealers and suppliers since unlike Kinetic Motors,Mahindra will put them to good use.

But kinetic motors needs a huge makeover if it has to come anywhere close to its two wheeler rivals.Just like Tata's jaguar deal this too would be a huge gamble one which is really difficult to predict if mahindra would be able to pull off successfully,the only plus point would be it would a much smaller gamble as compared to Tata.