Mahindra Two Wheelers has indicated that it would be adopting segmentation strategy instead of trying to stuff products in motorcycle and scooter segments in a bid to establish and grow its business.
Backed by strong in-house R&D, the company intends to enhance product portfolio in motorcycle and scooter segments. The company, which has just re-entered the motorcycle segment with two new features-packed bikes, is charting at least three launches in the scooter segment during the next year. The company had withdrawn its first bike Stallio due to some technical issues.
The firm sees greater opportunities to grow and position its two-wheelers by creating sub-segments targeting specific customer experiences. The current two bike launches have also been driven by its segmentation strategy as it looks to tap the largest category — 110cc bike segment — first to create an addressable new segment targeting specific set of customers. It expects both the new bikes — Pantero and Centuro — to drive boost volumes. “In the 110 cc segment, there is a whole range of new models and each one is trying to capture different set of customers through unique positioning,” Anoop Mathur, president – two-wheeler sector, Mahindra & Mahindra told Financial Chronicle.
While the company is charting a plan to create a slew of news segments in the motorcycle category, it is also aggressively planning to push its scooter volumes, presently driven by two products — Duro and Rodeo. “While our two scooter brands Duro and Rodeo, both 125cc products, have completely different positioning targeting unique segment of customers, we will come out with more products,” he added.
The company is preparing to launch at least three products in the scooter segment during the next 12-13 months. It saw 20 per cent drop in scooter volumes at 85,101 units during the first nine months of this financial year as against 106,429 units in the same period last year. The company saw its market share falling to 4 per cent from 6 per cent in scooter market, which actually reported 18 per cent growth during first three quarters of this financial year.
“The chief contribution to the growth of scooters came entirely through new launches. There is a penchant for innovation, new technology and new products among the two wheeler customers and we are responding through new launches in the coming months,” pointed out Mathur.
Mahindra’s two-wheeler R&D centre in Pune has indigenously developed two engine platforms – 110cc and 300cc. “We will design and manufacture two-wheeler engines in house,” said Viren Popli, executive vice president — strategy and market development, Mahindra Two Wheelers, which also has the advantage of using the infrastructure of Mahindra Research Valley, group’s modern automobile R&D facility near Chennai.
