Mahindra and Mahindra announced a significant investment in its two-wheeler subsidiary, Classic Legends. Alongside external investors, the company plans to inject $105 million (₹ 8,736 crores) into Classic Legends over the next two to three years, according to an official exchange filing on Wednesday.
Of the total investment, Mahindra will contribute ₹52.5 crore, with the remaining funds sourced from existing shareholders and new investors. Mahindra currently holds a 60 percent stake in Classic Legends, known for manufacturing iconic two-wheelers such as Jawa, Yezdi, and BSA.
While the specifics of the additional investors remain unclear, this strategic move comes amidst heightened competition in the Indian premium motorcycle market. International players like Harley-Davidson and Triumph are aggressively pricing their models through domestic partnerships with Hero MotoCorp and Bajaj Auto respectively.
Classic Legends, despite successfully reviving heritage brands like Yezdi and Jawa, faces challenges in gaining traction in the premium segment. This segment is currently dominated by Royal Enfield.
The infusion of funds is expected to strengthen Classic Legends' position in the fast-growing motorcycle segment in India. However, the company has not provided insights into strategies or initiatives associated with this investment. We think the fresh investment will play a crucila role in the development of the upcoming range of motorcycles from Classic Legends, including the upcoming electric motorcycle.
