Stallio output plunges as Mahindra replaces parts

Mahindra & Mahindra (M&M) chose not to make public a recall of its solo motorcycle model, Stallio. The company has been replacing clutch and gear levers in the 110-cc bike since it went on sale in October last year. The Rs 49,900 Stallio marked the conglomerate’s entry into the motorcycle market.

Mahindra Two Wheelers, the company's two-wheeler division, has sold 5,135 Stallio motorcycles between its launch and January, according to Siam (Society of Indian Automobile Manufacturers) data. It, however, remains unclear how many of the sold motorcycles were affected by the faulty parts.

Mahindra is a new entrant to the motorcycle business and is thus taking time to build up a smoother supply chain management, according to industry experts.

The faulty parts have been replaced in most of the Stallios while the new ones are free of the problem, five dealers confirmed. Production of the motorcycle, however, has been decelerating since October owing to scarcity of these parts and will continue for the next four months. Stallio’s production stood at 3,350 units in October but fell to 421 in January, according to Siam.

“When we launched the Stallio, the response was very positive and we had significant demand. However, today we are faced with certain supply chain related constraints of some critical components. This is a short-term phenomenon and will be sorted out latest by June 2011. Once this situation is resolved, one will see a lot more Stallios on the roads,” Mahindra Two Wheelers said in an email response.

As a result, Mahindra & Mahindra may have delayed the launch of the 300 cc Mojo, priced at Rs 175,000, which was unveiled in September and was to start selling by February.

Mahindra Two Wheelers also sells four scooter models — Rodeo, Duro, Flyte and Kine. Sales of the automotive company more than doubled to 138,461 units between April and January this year.

“I don’t think this (the recall) would affect Mahindra & Mahindra’s brand image in the two-wheeler space. It is selling 15,000 scooters monthly, which is very good for a new player,” auto analyst at Prabhudas Liladher Surjit Arora said.

“We are in constant communication with our valued customers and are aware that certain parts of the motor cycle require some fine-tuning and adjustment. As a responsible customer-centric automotive company, we are proactively addressing this to ensure customer satisfaction,” the response added.

Mahindra & Mahindra entered the scooter market with a majority stake in Kinetic Motor in 2008.