While on the one end, the government is planning to sell a majority stake in the ailing Scooters India, players like Indian utility vehicles maker Mahindra & Mahindra and three-wheeler maker Atul Auto Ltd are reportedly interested in the race to bag the company.

It may be noted here that government plans to offer upto 74 percent stake in Scooters India. For the uninitiated, Scooters India, in which the government owns about 95 percent stake, reported an Rs 220 million loss in the fiscal year ending March 2010, according to data on the BSE.

It may be recalled here that the company which sold two wheelers under the brands Vijai Super and Lambretta, discontinued two-wheeler production in 1997.

It has been learned from the sources that Mahindra that has recently signed a preliminary agreement for acquiring Korean automaker Ssangyong Motor, is looking at it to add to its three-wheeler portfolio.

On the other end, if Atul Auto is able to pick it, it will give a big boost to the already robust portfolio of the company. The company intends to invest in the latter's technology and expand capacity.