UPDATE 1-India's Mahindra and Mahindra, others to invest $105 mln in two-wheeler unit

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BENGALURU, Dec 13 (Reuters) - Indian automaker Mahindra and Mahindra said on Wednesday that the company, along with external investors, will spend 8.75 billion rupees ($105 million) in its two-wheeler unit, Classic Legends, over the next two to three years.

The 'Scorpio' car manufacturer, will invest 5.25 billion and the remaining will come from existing shareholders and new investors, Mahindra said in an exchange filing.

Mahindra owns 60% of Classic Legends, which manufactures two-wheelers such as Jawa, Yezdi, and BSA.

It is not immediately clear who the other investors are.

The investment comes at a time when the Indian premium motorcycle market is seeing aggressively priced models from international companies like Harley-Davidson and Triumph through domestic partnerships with Hero MotoCorp and Bajaj Auto.

While Classic Legends has revived heritage brands like Yezdi and Jawa, they have not been able to penetrate the premium segment, which is largely dominated by Eicher Motor's Royal Enfield.

Classic Legends will use the investment to build a strong business in the fast-growing premium motorcycle segment in India, Mahindra said, without elaborating. ($1 = 83.3650 Indian rupees) (Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sonia Cheema)