Advertisement


Advertisement

Thread Rating:
  • 6 Vote(s) - 2.5 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Mahindra to launch sub-100cc bike
Advertisement
#1
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 (BAJAJAUTO.NS : 2101.05 0) 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 (^BSESN : 20535.22 -7.86) 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 (SATYAM.BO : 88.5 +0.1), which was later renamed as Mahindra Satyam.
yahoo
Reply
Thanks given by:
Advertisement
Advertisement




Possibly Related Threads...
Thread Author Replies Views Last Post
  General News: Hero to launch almost a dozen new electric scooters this financial year: Report nairrk 0 750 05-21-2018, 12:53 PM
Last Post: nairrk
  General News: Suzuki Swift Sport 2017 Unveil on September 12, India Launch Expected Soon nairrk 0 1,031 07-24-2017, 06:19 PM
Last Post: nairrk
  General News: New Chevrolet Beat to Launch in India on May 25 nairrk 0 1,062 04-29-2017, 07:39 AM
Last Post: nairrk
  General News: Toyota Innova Touring Sport Edition to Launch in India on May 4, 2017 nairrk 0 1,209 04-26-2017, 01:14 PM
Last Post: nairrk
  General News: New Maruti Suzuki Swift DZire Facelift Teased, Launch Soon nairrk 0 1,020 04-24-2017, 09:34 AM
Last Post: nairrk
  General News: Renault Kwid's 1-Litre Engine Version To Launch in August 2016 nairrk 0 1,422 08-06-2016, 03:00 PM
Last Post: nairrk
  Mahindra's BLUE SENSE app for the XUV500 and new Scorpio SRK 0 1,018 03-31-2015, 12:17 PM
Last Post: SRK
  Mahindra could relaunch Luna two wheelers SRK 0 899 03-09-2015, 09:21 PM
Last Post: SRK
  2015 Honda Jazz India launch will happen in June SRK 0 983 03-09-2015, 09:10 PM
Last Post: SRK
  Mercedes Benz B-Class facelift launch on 11th March SRK 0 987 03-04-2015, 09:26 PM
Last Post: SRK

Forum Jump:


Users browsing this thread: 1 Guest(s)
Advertisement