Even as the two wheeler industry posts negative growth international companies like SYM, Suzuki, HMSI see great potential in the scooter market. This is what seems to be driving Taiwanese 2 wheele major SYM to consider hiking its current a 11.1% stake in cash strapped Kinetic motors. Infact sources say SYM could eventually even consider a majority stake, reports CNBC TV 18.

Harrison Lui Exec VP, SYM - Taiwan says, "In long run, it can be a partnership of equals but both parties will decide how much percentage of shares." Kinetic motors has posted a negative growth in the last two quarters but is hopeful of breaking even by June 2008. The company plans to raise about Rs 80 crore for both its engineering and motors divison. So a stake sale to strategic partner Like SYM may fit perfectly. Firodias or the promoters hold almost 63% stake in Kinetic Motors of which 49% is held through Kinetic Engineering.

Sullaja Firodia Motwani MD of Kinetic Motor says, "SYM and Kinetic has a growing partneship, we shall continue to grow together, how we shape it in future, its some months away." SYM, could have entered India on its own but it chose to rope in a local partner, in this case, Kinetic, to save costs and expedite production. As the product pipeline grows and the scooter market expands, SYM's 11% bet on kinetic may pay off.