The Telegraph
Monday , January 14 , 2013
Since 1st March, 1999
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M&M charts bike strategy

Calcutta, Jan. 13: Mahindra 2 Wheelers — a subsidiary of domestic automotive major Mahindra & Mahindra — is planning to make the most of the fragmented demand within each segment to strengthen its presence in bikes.

The company, which has re-entered the motorcycle segment with the launch of the 110cc Centuro and the Pantero, plans to introduce 2-3 products every year. It is looking to bring in the 300cc premium bike Mojo by the year-end.

“The market at the moment is highly fragmented. That is why we decided to introduce two separate vehicles in the 110cc segment. One is semi-urban, while the other is more appealing to the young,” Viren Popli, executive vice-president (strategy and market development) of Mahindra 2 Wheelers, said. He added that the company would follow this strategy for its upcoming launches, too.

“We are looking to expand our product range in the 150cc, 200cc and 300cc segments. We plan to introduce 2-3 products each year across the segments and by the end of this year, we are looking to introduce the 300cc Mojo,” he said

Analysts said multiple products within the same segment might result in more sales for the firm given the slow market growth of only 3-4 per cent and the high base of the two-wheeler industry dominated by a handful of players.

The company had entered the 110cc segment with the Stallio. However, it had to stop the production of the bike in October 2010 because of a faulty transmission and component shortage.

Popli said the firm was looking at new export markets. “We are looking at Bangladesh, Nepal and Sri Lanka. We are also weighing the African, Southeast Asian and Latin American countries,” he said.