Says it would be foolhardy for the company not to participate.
Mahindra & Mahindra (M&M), the utility vehicle and tractor market leader, says it will leave no stone unturned in the fiercely competitive two-wheeler market. After last week’s launch of two indigenously built motorcycles, the company wants to position at least one new product in every segment of the 9.37-million-units-a-year market.
According to a senior company executive, this will be done over the next few years, with three research and development teams working simultaneously on a slew of projects. Mahindra 2 Wheelers, the company formed after buying the assets of the Firodia family-led Kinetic Motors two years ago for Rs 110 crore, plans to have several launches in the motorcycle and scooter segments.
These will be in the economy (100-110cc), executive (110cc-135cc) premium (150cc-225cc) and power (250cc and above) segment. The company had launched two new scooters last year – Rodeo and Duro – and followed up with the launch of a motorcycle, Stallio, last week.
Anoop Mathur, president (two-wheeler sector), M&M, said: “We want to be there in all the segments. The market has been growing robustly, despite a higher base. It would be foolhardy for the company not to participate.”
Features to hold M&M in good stead
The Stallio, a 110cc motorcycle and is priced at Rs 41,200-44,700 (ex-showroom, Pune), has to compete against established bike brands like Hero Honda’s Splendor, CD Dawn and Passion, Bajaj’s Discover and TVS Star, and newer brands like Honda’s CB Twister and Yamaha’s YBR 110.
This entry-level segment commands a lion share of the two-wheeler bike market and accounts for about 70 per cent of the total yearly sales, which could cross 10.5 million units this year. Hero Honda and Bajaj Auto lead the charts here, with a combined market share of more than 85 per cent. However, M&M believes the features offered by it on the Stallio model are not commonly seen on a commuter bike and will be a differentiating point for it in an already crowded market.
The company, for instance, has strapped the Stallio with acceleration meter, a LED pilot lamp and tail lamp. These features are more commonly seen on other expensive models like Bajaj’s Pulsar or the TVS Apache (both above 150cc).
Its other bike, Mojo, a 300cc niche power bike priced at Rs 1.75 lakh (enough to fetch a Tata Nano), will hit the market around January. The company says it is aware the market for such expensive bikes has not developed yet. But, according to experts, the launch would be used more for showcasing M&M’s technological prowess.
‘Customers do their research’
Well before its foray into the two-wheeler segment, M&M had bought an Italian design and engineering company known as Engines and Engineering. This company helped M&M develop the Stallio, even as it held the copyrights for one of its earlier designs, which was used in developing the Mojo.
Mathur adds: “We work seamlessly on projects to understand what the consumer needs. We have an R&D unit in Pune (Kinetic Motors), we have our own R&D and then we have people working from Engine Engineering.”
Mathur is confident on the competition front, too. “Research shows 68 per cent of buyers do their research before buying a vehicle,” he says. “The market is so under developed and there is so much scope for growth with penetration levels really low as of today. We started selling our scooters a year ago and, today, we have a market share of 10 per cent (in that segment). So, there is ample scope of growth.”
http://www.business-standard.com/india/news/mm-to-ride-into-every-two-wheeler-segment/410646/. Back
Mahindra Power Scooters appoints Kareena Kapoor as brand ambassador
The first campaign featuring Kapoor will be for the product, Mahindra Rodeo.
Popular Hindi film actor, Kareena Kapoor has been appointed as the brand ambassador for Mahindra Two Wheelers' entire range of PowerScooters.
Kapoor will soon feature in a 360-degree multimedia campaign, encompassing print, electronic and online media. The first campaign, which will be for the Mahindra Rodeo, is slated to appear later this month.
The Rodeo claims to be a youthful, fun and fresh brand that will be positioned as a two-wheeler with the right mix of style and power.
The two-wheeler sector of Mahindra aims to design and market a full range of scooters and motorcycles for the Indian and global markets.
The company's PowerScooters portfolio caters to a range of consumer segments and includes the Mahindra Rodeo (positioned as an innovative and stylish product for the youth); the Mahindra Duro (positioned as a rugged family scooter); and the Flyte (positioned as the Indian woman's two-wheeler of choice).
Explaining the choice of brand endorser, Anoop Mathur, president, Two Wheeler Sector and member, group executive board, Mahindra & Mahindra says in a press statement, "We are delighted to have Kareena Kapoor on-board as brand ambassador for our entire range of PowerScooters. She has a strong connect with the youth, who are inspired by her hard work, discipline and natural acting talent."
Kapoor was first seen riding Mahindra's scooters in the blockbuster film, 3 Idiots.
Mahindra Two Wheelers recently made its debut in the motorcycle segment with the launch of the Mahindra Stallio and Mahindra Mojo; and Aamir Khan has been signed as the brand ambassador for the 110cc Stallio. The 300cc Mojo is positioned as an exclusive lifestyle bike -- a machine for motorcycle enthusiasts and passionate bikers.
In the two-wheeler category, Priyanka Chopra has been endorsing Hero Honda Pleasure. In the past, Bollywood actors, Preity Zinta and Minisha Lamba were seen endorsing TVS Scooty; while Bipasha Basu was the brand ambassador for Kinetic SYM Flyte.
http://www.afaqs.com/news/story.html?sid=28487_Mahindra+PowerScooters+appoints+Kareena+Kapoor+as+brand+ambassador
Popular Hindi film actor, Kareena Kapoor has been appointed as the brand ambassador for Mahindra Two Wheelers' entire range of PowerScooters.
Kapoor will soon feature in a 360-degree multimedia campaign, encompassing print, electronic and online media. The first campaign, which will be for the Mahindra Rodeo, is slated to appear later this month.
The Rodeo claims to be a youthful, fun and fresh brand that will be positioned as a two-wheeler with the right mix of style and power.
The two-wheeler sector of Mahindra aims to design and market a full range of scooters and motorcycles for the Indian and global markets.
The company's PowerScooters portfolio caters to a range of consumer segments and includes the Mahindra Rodeo (positioned as an innovative and stylish product for the youth); the Mahindra Duro (positioned as a rugged family scooter); and the Flyte (positioned as the Indian woman's two-wheeler of choice).
Explaining the choice of brand endorser, Anoop Mathur, president, Two Wheeler Sector and member, group executive board, Mahindra & Mahindra says in a press statement, "We are delighted to have Kareena Kapoor on-board as brand ambassador for our entire range of PowerScooters. She has a strong connect with the youth, who are inspired by her hard work, discipline and natural acting talent."
Kapoor was first seen riding Mahindra's scooters in the blockbuster film, 3 Idiots.
Mahindra Two Wheelers recently made its debut in the motorcycle segment with the launch of the Mahindra Stallio and Mahindra Mojo; and Aamir Khan has been signed as the brand ambassador for the 110cc Stallio. The 300cc Mojo is positioned as an exclusive lifestyle bike -- a machine for motorcycle enthusiasts and passionate bikers.
In the two-wheeler category, Priyanka Chopra has been endorsing Hero Honda Pleasure. In the past, Bollywood actors, Preity Zinta and Minisha Lamba were seen endorsing TVS Scooty; while Bipasha Basu was the brand ambassador for Kinetic SYM Flyte.
http://www.afaqs.com/news/story.html?sid=28487_Mahindra+PowerScooters+appoints+Kareena+Kapoor+as+brand+ambassador
Bajaj Auto Developing New Motorcycle
NEW DELHI -- Auto parts suppliers to Bajaj Auto Ltd. have been informed by India's second-biggest two-wheeler maker by sales that the company is developing a new 100-cubic centimeter motorcycle that could cost less than 40,000 rupees ($905.)
The new motorcycle is being developed as part of Bajaj Auto's plan to expand its offerings in the entry-level segment, executives at two auto parts suppliers, who declined to be named, told Dow Jones Newswires recently.
Bajaj Auto currently sells 10 motorcycle models, including two with 100cc engines--the Discover 100 and Platina. It also sells a 150cc motorcycle under the Discover brand and a Platina 125cc motorcycle.
Offering more products in the entry-level motorcycle segment will help Bajaj Auto intensify competition with bigger rival Hero Honda Motors Ltd. The New Delhi-based affiliate of Honda Motor Co. controls more than half of India's motorcycle market with 15 two-wheeler models, including six 100cc models such as the Splendor+, Passion Plus and CD Dawn.
Others, such as TVS Motor Co. and Honda Motorcycle Scooter India Pvt. Ltd., also sell 100cc motorcycles in the country.
Entry-level motorcycles with 100cc-125cc engine capacities comprise more than half of the more than nine million motorcycles and scooters sold in India each year, according to industry data.
Bajaj Auto Managing Director Rajiv Bajaj confirmed that the company is working on a new entry-level motorcycle, but declined to disclose its price or engine capacity.
He said the company may introduce the new motorcycle next year. "We have only begun an evaluation, hopefully (the vehicle can be launched in) 2011," he said.
Bajaj Auto previously decided to withdraw from the entry-level motorcycle segment but re-entered the segment in July last year with the Discover brand. The company has sold more than one million units of the Discover brand to date.
Bajaj Auto's motorcycle sales rose 68% during April-August 2010 to 1.4 million units. In comparison, total motorcycle sales in India grew 24% in the same period to 3.54 million units.
Bajaj Auto is in discussions with Renault SA and Nissan Motor Co. to use a low-cost minicar platform to develop more vehicles, Rajiv Bajaj said.
"This (more vehicles on the platforms) is possible, although (it's) yet under discussion," he said, adding that Bajaj Auto can consider introducing both low-cost as well as premium vehicles on the minicar platform.
The new products could be marketed independently by Bajaj Auto, Bajaj said, adding that a light truck is already being planned for development on the minicar platform.
The Renault-Nissan Alliance and Bajaj Auto signed an initial agreement in July to produce a low-cost minicar that will likely compete with Tata Motors Ltd.'s Nano minicar, currently the world's cheapest car. Bajaj Auto, Renault and Nissan's low-cost car is expected to be introduced in 2012.
Under the July agreement, Bajaj Auto will be responsible for the design, development and manufacturing of the new car, while Renault and Nissan will be responsible for branding, marketing, sales and distribution.
http://online.wsj.com/article/SB10001424052748704696304575537611599960160.html?mod=googlenews_wsj
The new motorcycle is being developed as part of Bajaj Auto's plan to expand its offerings in the entry-level segment, executives at two auto parts suppliers, who declined to be named, told Dow Jones Newswires recently.
Bajaj Auto currently sells 10 motorcycle models, including two with 100cc engines--the Discover 100 and Platina. It also sells a 150cc motorcycle under the Discover brand and a Platina 125cc motorcycle.
Offering more products in the entry-level motorcycle segment will help Bajaj Auto intensify competition with bigger rival Hero Honda Motors Ltd. The New Delhi-based affiliate of Honda Motor Co. controls more than half of India's motorcycle market with 15 two-wheeler models, including six 100cc models such as the Splendor+, Passion Plus and CD Dawn.
Others, such as TVS Motor Co. and Honda Motorcycle Scooter India Pvt. Ltd., also sell 100cc motorcycles in the country.
Entry-level motorcycles with 100cc-125cc engine capacities comprise more than half of the more than nine million motorcycles and scooters sold in India each year, according to industry data.
Bajaj Auto Managing Director Rajiv Bajaj confirmed that the company is working on a new entry-level motorcycle, but declined to disclose its price or engine capacity.
He said the company may introduce the new motorcycle next year. "We have only begun an evaluation, hopefully (the vehicle can be launched in) 2011," he said.
Bajaj Auto previously decided to withdraw from the entry-level motorcycle segment but re-entered the segment in July last year with the Discover brand. The company has sold more than one million units of the Discover brand to date.
Bajaj Auto's motorcycle sales rose 68% during April-August 2010 to 1.4 million units. In comparison, total motorcycle sales in India grew 24% in the same period to 3.54 million units.
Bajaj Auto is in discussions with Renault SA and Nissan Motor Co. to use a low-cost minicar platform to develop more vehicles, Rajiv Bajaj said.
"This (more vehicles on the platforms) is possible, although (it's) yet under discussion," he said, adding that Bajaj Auto can consider introducing both low-cost as well as premium vehicles on the minicar platform.
The new products could be marketed independently by Bajaj Auto, Bajaj said, adding that a light truck is already being planned for development on the minicar platform.
The Renault-Nissan Alliance and Bajaj Auto signed an initial agreement in July to produce a low-cost minicar that will likely compete with Tata Motors Ltd.'s Nano minicar, currently the world's cheapest car. Bajaj Auto, Renault and Nissan's low-cost car is expected to be introduced in 2012.
Under the July agreement, Bajaj Auto will be responsible for the design, development and manufacturing of the new car, while Renault and Nissan will be responsible for branding, marketing, sales and distribution.
http://online.wsj.com/article/SB10001424052748704696304575537611599960160.html?mod=googlenews_wsj
Honda Plans $600 Motorbike to Fight Emerging Rivals
Oct. 7 (Bloomberg) -- Honda Motor Co., the world’s largest motorcycle maker, plans to introduce a new motorbike that may be its cheapest to raise sales in emerging markets amid rising competition from Chinese and Indian rivals.
Honda will build and sell the two-wheeler for as little as 4,000 yuan ($599) in China starting next year and also introduce it in Nigeria and Latin America, Tatsuhiro Oyama, senior managing director in charge of Honda’s motorcycle operations, said in an interview in Tokyo last week.
Emerging-market rivals “will really push into this area,” he said. “Honda needs to be right there with them so we won’t get bypassed.” The company will compete with Chinese and Indian motorcycle makers, targeting low-income customers in other developing “next markets,” Oyama said.
The new model may boost Honda’s revenue as demand for motorcycles weakens in Japan, Europe and the U.S. Higher emerging-market sales may also offset potentially lower profits repatriated from the company’s Indian unit Hero Honda Motors Ltd. as KKR & Co., TPG Capital, Carlyle Group and Bain Capital LLC compete to acquire a part of Honda’s 26 percent stake, according to five people with direct knowledge of the situation.
Cheapest Motorcycle
Shares of Tokyo-based Honda fell 0.3 percent to 3,015 yen as of 12:38 p.m. in Tokyo. The stock has fallen 3.1 percent in 2010, compared with an 8 percent drop for the benchmark Nikkei 225 stock average.
Currently, the company’s cheapest motorcycle in China is the 100cc Wave that retails for 4,600 yuan, while in India the 36,350-rupee ($817) 97cc CD-Dawn is its lowest priced model. Honda’s most expensive offering is the 1,800cc Gold Wing that sells for 3.68 million yen ($44,370) in Japan.
Mahindra & Mahindra Ltd., based in Mumbai, last week unveiled two motorcycles for sale in India, Africa, Southeast Asia and Latin America. Bajaj Auto Ltd., India’s second-largest two-wheeler maker, aims to roughly triple its global market share to 30 percent by boosting overseas sales.
China’s motorcycle makers are benefiting from low-cost suppliers and support from the nation’s government, Oyama said.
Two of the buyout funds interested in Honda’s stake in Hero Honda may jointly buy about 15 percent, valued at $1.1 billion, three of the people said, declining to be named before an official announcement, Bloomberg News reported Sept. 17. Another 5 percent may be sold to the Hero Group’s Munjal family, which holds a 26 percent stake in the New Delhi-based company, two of the people said.
Munjal Family
The Munjal family “has its own intentions, and we are considering them,” Oyama said. “You should understand that we are not really taking the initiative on this matter.”
Honda and the Hero Group are in discussions about renewing a technology-licensing agreement that expires in 2014, Oyama said.
Emerging economies are offering Honda’s motorbike division opportunities for growth. While unit sales plunged 41 percent in North America last fiscal year, they rose 1.4 percent in Asia outside of Japan.
In India, Honda is expanding an existing motorcycle plant and building a new plant to add 2.2 million units of capacity next year at Honda Motorcycle & Scooter India Pvt., a wholly owned unit.
Hero Honda
Hero Honda, maker of half the motorcycles sold in India, will add 300,000 units of capacity by January.
Vehicle development is undertaken by Honda, and Hero Honda targets customers in rural areas, while Honda’s wholly-owned unit focuses on urban markets, he said.
Separately, Honda is grappling with a strong yen, which traded at 82.88 against the dollar today, close to a Sept. 15 record, reducing the value of repatriated profits from exports.
“The yen at anywhere between 90 and 110 makes things difficult,” Oyama said.
Honda builds motorcycles at its plant in Kumamoto prefecture in southern Japan, which exports large leisure models to the U.S.
As demand in developed markets dwindles, Honda is increasing production overseas with 56 percent of Japanese motorcycle sales imported from abroad. That ratio will rise, Oyama said.
While the strong yen cuts Japan’s competitiveness, large motorcycles require a high level of production quality and development that cannot be replicated overseas, he said.
“We still need production in Japan,” he said.
Honda will build and sell the two-wheeler for as little as 4,000 yuan ($599) in China starting next year and also introduce it in Nigeria and Latin America, Tatsuhiro Oyama, senior managing director in charge of Honda’s motorcycle operations, said in an interview in Tokyo last week.
Emerging-market rivals “will really push into this area,” he said. “Honda needs to be right there with them so we won’t get bypassed.” The company will compete with Chinese and Indian motorcycle makers, targeting low-income customers in other developing “next markets,” Oyama said.
The new model may boost Honda’s revenue as demand for motorcycles weakens in Japan, Europe and the U.S. Higher emerging-market sales may also offset potentially lower profits repatriated from the company’s Indian unit Hero Honda Motors Ltd. as KKR & Co., TPG Capital, Carlyle Group and Bain Capital LLC compete to acquire a part of Honda’s 26 percent stake, according to five people with direct knowledge of the situation.
Cheapest Motorcycle
Shares of Tokyo-based Honda fell 0.3 percent to 3,015 yen as of 12:38 p.m. in Tokyo. The stock has fallen 3.1 percent in 2010, compared with an 8 percent drop for the benchmark Nikkei 225 stock average.
Currently, the company’s cheapest motorcycle in China is the 100cc Wave that retails for 4,600 yuan, while in India the 36,350-rupee ($817) 97cc CD-Dawn is its lowest priced model. Honda’s most expensive offering is the 1,800cc Gold Wing that sells for 3.68 million yen ($44,370) in Japan.
Mahindra & Mahindra Ltd., based in Mumbai, last week unveiled two motorcycles for sale in India, Africa, Southeast Asia and Latin America. Bajaj Auto Ltd., India’s second-largest two-wheeler maker, aims to roughly triple its global market share to 30 percent by boosting overseas sales.
China’s motorcycle makers are benefiting from low-cost suppliers and support from the nation’s government, Oyama said.
Two of the buyout funds interested in Honda’s stake in Hero Honda may jointly buy about 15 percent, valued at $1.1 billion, three of the people said, declining to be named before an official announcement, Bloomberg News reported Sept. 17. Another 5 percent may be sold to the Hero Group’s Munjal family, which holds a 26 percent stake in the New Delhi-based company, two of the people said.
Munjal Family
The Munjal family “has its own intentions, and we are considering them,” Oyama said. “You should understand that we are not really taking the initiative on this matter.”
Honda and the Hero Group are in discussions about renewing a technology-licensing agreement that expires in 2014, Oyama said.
Emerging economies are offering Honda’s motorbike division opportunities for growth. While unit sales plunged 41 percent in North America last fiscal year, they rose 1.4 percent in Asia outside of Japan.
In India, Honda is expanding an existing motorcycle plant and building a new plant to add 2.2 million units of capacity next year at Honda Motorcycle & Scooter India Pvt., a wholly owned unit.
Hero Honda
Hero Honda, maker of half the motorcycles sold in India, will add 300,000 units of capacity by January.
Vehicle development is undertaken by Honda, and Hero Honda targets customers in rural areas, while Honda’s wholly-owned unit focuses on urban markets, he said.
Separately, Honda is grappling with a strong yen, which traded at 82.88 against the dollar today, close to a Sept. 15 record, reducing the value of repatriated profits from exports.
“The yen at anywhere between 90 and 110 makes things difficult,” Oyama said.
Honda builds motorcycles at its plant in Kumamoto prefecture in southern Japan, which exports large leisure models to the U.S.
As demand in developed markets dwindles, Honda is increasing production overseas with 56 percent of Japanese motorcycle sales imported from abroad. That ratio will rise, Oyama said.
While the strong yen cuts Japan’s competitiveness, large motorcycles require a high level of production quality and development that cannot be replicated overseas, he said.
“We still need production in Japan,” he said.
Mahindra to launch sub-100cc bike
Mahindra & Mahindra (M&M), the country’s largest utility vehicles manufacturer, is planning to launch a sub-100 cc motorcycle. The bike, which will be the first of its kind in India, will help company carve out a niche of its own in the highly competitive motorcycle market in India.
Currently, there are three segments in the domestic motorcycle industry: economy, executive and premium. Over half of all bike sales happen in the 125cc-150cc segment, while the 100-125 cc contributes 20%. Analysts feel Mahindra could be attempting to create a new segment for itself with the sub-100 cc motorcycle.
M&M secured a beachhead in the burgeoning two-wheeler segment two years back when it acquired the operating assets of Kinetic Motors for Rs 110 crore. The M&M subsidiary Mahindra 2 Wheelers makes scooters including the Flyte and Rodeo. On September 30, it entered the motorcycle segment with the 107cc Stallio and unveiled its 300cc cruiser bike Mojo. In September, Mahindra 2 Wheelers sold 16,569 scooters.India’s 12-million unit two-wheeler industry is dominated by three large players —Hero Honda, Bajaj Auto and TVS Motors—who command 80% of the market.
“Our market research told us that low-cost bikes is an area where we need to work upon...We have started preliminary work,” an executive privy to the plan told FE. However, he declined to give detailed specifications of the product, which is still in development stages. A company spokesperson declined to comment.
On Wednesday, the M&M share closed at Rs 739.60, down Rs 5.75 or 0.77%, while the benchmark 30-share Sensex rose 135.37 points or 0.66% to 20,543.08 points.
Market leader Hero Honda had said last year that it would explore possibilities to offer cheaper motorcycles, sparking rumours of an impending ‘Nano’ motorcycle.
Leader of automotive practice at PricewaterhouseCoopers Abdul Majeed said that M&M’s proposed low-cost bike could create a segment of its own. “The competition is so intense that if a company is working on something different, it would create excitement. This segment has not been explored, but it certainly has good potential,” he said.
Outlining the detailed two-wheeler strategy of the company, an executive said that going forward, a substantial chunk of Mahindra 2 Wheelers’ revenues will come from the motorcycle segment. “We would be aligning ourselves to mirror the two-wheeler market,” he said.
“It was not an impulse to enter the two-wheeler segment. The decision was taken only after a strategic understanding of the market,” he added.
Apart from several leading utility vechicle brands, M&M also builds passenger vehicles like the Scorpio and the Xylo.
At the launch of the Stallio and Mojo motorcycles, Anand Mahindra, vice-chairman and managing director, Mahindra Group had said: “In the last 12 months, Mahindra 2 Wheelers has achieved a milestone by registering a sale of 1.5 lakh units—a clear validation of the success of our niche PowerScooters strategy.” M&M had said that the new motorcycles are part of the company’s commitment to establish a robust, end-to-end two wheeler business in every segment of the industry.
Mahindra already has products across the automobile spectrum. It is present in commercial vehicles, sedans, utility vehicles, two-wheelers, and electric cars. The group strengthened its IT arm with the acquisition of Satyam Computer Services, which was later renamed as Mahindra Satyam.
Currently, there are three segments in the domestic motorcycle industry: economy, executive and premium. Over half of all bike sales happen in the 125cc-150cc segment, while the 100-125 cc contributes 20%. Analysts feel Mahindra could be attempting to create a new segment for itself with the sub-100 cc motorcycle.
M&M secured a beachhead in the burgeoning two-wheeler segment two years back when it acquired the operating assets of Kinetic Motors for Rs 110 crore. The M&M subsidiary Mahindra 2 Wheelers makes scooters including the Flyte and Rodeo. On September 30, it entered the motorcycle segment with the 107cc Stallio and unveiled its 300cc cruiser bike Mojo. In September, Mahindra 2 Wheelers sold 16,569 scooters.India’s 12-million unit two-wheeler industry is dominated by three large players —Hero Honda, Bajaj Auto and TVS Motors—who command 80% of the market.
“Our market research told us that low-cost bikes is an area where we need to work upon...We have started preliminary work,” an executive privy to the plan told FE. However, he declined to give detailed specifications of the product, which is still in development stages. A company spokesperson declined to comment.
On Wednesday, the M&M share closed at Rs 739.60, down Rs 5.75 or 0.77%, while the benchmark 30-share Sensex rose 135.37 points or 0.66% to 20,543.08 points.
Market leader Hero Honda had said last year that it would explore possibilities to offer cheaper motorcycles, sparking rumours of an impending ‘Nano’ motorcycle.
Leader of automotive practice at PricewaterhouseCoopers Abdul Majeed said that M&M’s proposed low-cost bike could create a segment of its own. “The competition is so intense that if a company is working on something different, it would create excitement. This segment has not been explored, but it certainly has good potential,” he said.
Outlining the detailed two-wheeler strategy of the company, an executive said that going forward, a substantial chunk of Mahindra 2 Wheelers’ revenues will come from the motorcycle segment. “We would be aligning ourselves to mirror the two-wheeler market,” he said.
“It was not an impulse to enter the two-wheeler segment. The decision was taken only after a strategic understanding of the market,” he added.
Apart from several leading utility vechicle brands, M&M also builds passenger vehicles like the Scorpio and the Xylo.
At the launch of the Stallio and Mojo motorcycles, Anand Mahindra, vice-chairman and managing director, Mahindra Group had said: “In the last 12 months, Mahindra 2 Wheelers has achieved a milestone by registering a sale of 1.5 lakh units—a clear validation of the success of our niche PowerScooters strategy.” M&M had said that the new motorcycles are part of the company’s commitment to establish a robust, end-to-end two wheeler business in every segment of the industry.
Mahindra already has products across the automobile spectrum. It is present in commercial vehicles, sedans, utility vehicles, two-wheelers, and electric cars. The group strengthened its IT arm with the acquisition of Satyam Computer Services, which was later renamed as Mahindra Satyam.