``We see great potential in the financing of two-wheelers and it makesbusiness sense to merge them now,'' Sulajja Firodia Motwani, joint managingdirector of Kinetic Engineering Ltd. Kinetic Fincap is the largest among thethree companies, with assets of Rs 200 crore.

The company sold one lakh scooters through the finance companies this yearand expects Rs 400-crore business next year. Meanwhile, Kinetic EngineeringLtd (KEL) unveiled a range of two-wheelers including its four-strokemotorcycles here on Friday. The motorcycles include three models -- GF 125,GF 150 and the Kinetic Challenger. The GF series are being produced incollaboration with Hyosung Motors of South Korea, and would priced aroundRs 50,000.

The vehicle is expected to roll out in the second quarter of this yearfollowed by a 150 cc version, priced at around Rs 60,000, within six monthsthereof.

The models, named GF series, would sport modern four-stroke engines andwould come with electric start, transient power fuel control (TPFI) and discbrakes as standard features.

The company also announced the launch of a new 100cc 4-stroke bike --Challenger. The bike would be launched in a phased manner across the countrybeginning February. The electric scooter would be launched in Delhi first. uThe Kinetic group would invest Rs 50 crore every year to introduce newmodels and variants in every segment of the bi-wheeler industry, a seniorcompany official said.

All the investments would be funded through internal accruals and would bepart of the group's plans to introduce one new model in every segment andone new variant for all the existing models each year, Motwani said.