A majority stake in the government operated Scooters India Ltd. has generated interest in the two major vehicle manufacturers in the Indian market namely Mahindra and Mahindra which produces utility vehicles and Atul Auto Ltd, which manufacture three-wheelers.

The government which owns about 95 5 percent of the shares in the company is planning to sell of about 74% of the stake. Scooters India is stated to have stopped its manufacture of two wheelers which it used to produce until 1997 under the trademark names of Lambretta and Vijai Super.

The company is conveyed to have fetched a loss of Rs 220 million by the close of the financial year that ended this March 2010.

Mahindra, the tractor producer, which recently entered into an introductory arrangement with Ssangyong Motor, a Korean automobile manufacturer, also has its eyes wide open speculating the pros and cons of adding the three-wheeler manufacturer to its own consignment.

Meanwhile Atul Auto has planned to invest in Scooter India's technical know-how and expand its capacity for the former also manufactures goods akin to those manufactured by the latter. The state has branded about 60 government owned companies wherein the disinvestment process is planned to be executed.