Mahindra 2 Wheelers, the two wheeler arm of India's largest utility vehicle major, Mahindra and Mahindra is taking a fresh step by restructuring its entire two-wheeler business - from the Research & Development to Dealer sales & service in a bid to capture its market share in the world's fastest growing two-wheeler market.
"We have been and will continue to invest in the two wheeler industry. Over the last couple of years we have significantly strengthened our fundamentals like a cutting edge R&D facility and upgraded manufacturing capacity", said Mr. Annop Mathur, President (two wheelers), Mahindra & Mahindra.
Mahindra is understood to invest over Rs 500 crore of fresh funds into the two wheeler business, which will go into setting up of a strong domestic R&D center, development of new products and to support this the company has already set up an all new assembly lines for scooters and motorcycles at its Pithampur plant with a capacity of 1 million units.
Mahindra 2 wheelers R&D center would be led by Mr. P. S. Ashok, the man behind the LML two wheeler business. Mahindra has already set up a strong team of 160 engineers, which is currently the third largest for two wheeler segment in the country.
"The company has already got approval from the board on the future investment and they have a product portfolio plan in place of 10-12 vehicles which will be across categories, as part of its mission statement till 2015-16", said Mr. Viren Popli, Sr. VP, Strategy & Market Development (two wheeler division), Mahindra & Mahindra.
"We were quiet for more than a year, as we were busy putting in place the infrastructure required for future growth. Having an international R&D capability alone was not enough we needed the strong in-house capability which have now put in place. Translating international design for Indian use needed a lot of work, which was one of the challenges we had with the Stallio. We are now designing in India for India", he added.
The company plans to re-launch Stallio in the next few months and has 3 more products including another motorcycle and scooter in the offing in FY-13, which will help the company build its falling volumes. Mojo, the premium motorcycle is also expected be launched in 12-18 months time.
Mahindra Two Wheelers posted a loss of Rs 169.21 crore in 2010-11 and it is piling. In FY-12, M&M sold about 1,34,750 units of Rodeo, Duro, Flyte which was a decline of 17.8% versus an industry growth of 15.27%
The company is aiming to be present across all segments (100 to 300 cc), but unlike the past, it is very realistic on the volumes today and sees itself as a niche player to begin with. And within those niches, it sees a great opportunity to sell to women and the youth.
"Women buyers for two wheelers are growing in mumbers and makes up for 40% of the scooter market or 8,00,000 units. And in women, you have to look further down into what women, there are housewives, working professionals, college students and they all have different needs and we are designing to their needs", said Mr. Popli.
"For M&M, the two-wheeler business is a marathon race. However when I say niche in the short term, I don't mean 1, 00,000 units kind of numbers, probably in every category we see at least 2,00,000 to 3,00,000 units numbers or may be more", he added.
Mahindra is understood to invest over Rs 500 crore of fresh funds into the two wheeler business, which will go into setting up of a strong domestic R&D center, development of new products and to support this the company has already set up an all new assembly lines for scooters and motorcycles at its Pithampur plant with a capacity of 1 million units.
Mahindra 2 wheelers R&D center would be led by Mr. P. S. Ashok, the man behind the LML two wheeler business. Mahindra has already set up a strong team of 160 engineers, which is currently the third largest for two wheeler segment in the country.
"The company has already got approval from the board on the future investment and they have a product portfolio plan in place of 10-12 vehicles which will be across categories, as part of its mission statement till 2015-16", said Mr. Viren Popli, Sr. VP, Strategy & Market Development (two wheeler division), Mahindra & Mahindra.
"We were quiet for more than a year, as we were busy putting in place the infrastructure required for future growth. Having an international R&D capability alone was not enough we needed the strong in-house capability which have now put in place. Translating international design for Indian use needed a lot of work, which was one of the challenges we had with the Stallio. We are now designing in India for India", he added.
The company plans to re-launch Stallio in the next few months and has 3 more products including another motorcycle and scooter in the offing in FY-13, which will help the company build its falling volumes. Mojo, the premium motorcycle is also expected be launched in 12-18 months time.
Mahindra Two Wheelers posted a loss of Rs 169.21 crore in 2010-11 and it is piling. In FY-12, M&M sold about 1,34,750 units of Rodeo, Duro, Flyte which was a decline of 17.8% versus an industry growth of 15.27%
The company is aiming to be present across all segments (100 to 300 cc), but unlike the past, it is very realistic on the volumes today and sees itself as a niche player to begin with. And within those niches, it sees a great opportunity to sell to women and the youth.
"Women buyers for two wheelers are growing in mumbers and makes up for 40% of the scooter market or 8,00,000 units. And in women, you have to look further down into what women, there are housewives, working professionals, college students and they all have different needs and we are designing to their needs", said Mr. Popli.
"For M&M, the two-wheeler business is a marathon race. However when I say niche in the short term, I don't mean 1, 00,000 units kind of numbers, probably in every category we see at least 2,00,000 to 3,00,000 units numbers or may be more", he added.
This article was Posted by:
Kurian Akkara
Source: News @ Economic Times
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