Mahindra had tried their best to make a mark in India’s hyper-competitive mass market two-wheeler segments.But now the company has announced that it has quit the ‘mass market’ two-wheeler segments in India.The Mahindra and Mahindra entered the two wheeler market 9 years ago, after taking over the business assets of Kinetic Motors.
“The company has pulled out from the mass market segment (150-200)cc of two-wheelers and is currently developing products for niche markets”
Mahindra has lost nearly 3,000 crore rupees through its two-wheeler business. so this is being the main reason for the company to finally quit the mass-market.The company’s sales decreased by 77 % when compared with same period April-july_last year, and the company’s market share stood 0.09 % by end of July, as per SIAM data.
Mahindra will no longer develop/manufacture new two wheelers such as 100-150cc scooters and motorcycles. However, existing sales and service will continue. In future, Mahindra will discontinue everything.
The investment required for two-wheeler product development is not very high and therefore, success of the new models has high upside potential.
Sales of Mahindra scooters such as Gusto, Rodeo, and Duro, and motorcycles such as Centuro and Mojo became hamper as per dealers. The Mahindra will continue its production of Centuro, Gusto, Rodeo, and Duro. But there is no more information about future development. Instead, the brand seeks to focus on niche segments of the market. where Niche segments bring big profits despite low volumes.
Mahindra is concentrating on Jawa band as well as BSA. Jawa and BSA branded motorcycles are more likely to arrive into India over the next couple of years.
The company was focused on right sizing the resources and reducing costs for the entire financial year. Right sizing the resources to the business also saw marketing spends reduced significantly. The challenge was to reduce the inventory levels and reduce the market exposure.
Mahindra has a good sale in other countries then domestic market. So the company will continue to export 150-200cc segment two wheelers. The company pulling out the domestic market and production will be allocated to export markets. During April-July period, its exports rose 17 % than the domestic market.
What about mojo??
Mahindra won’t stop production of Mojo where the development of Mojo will go on, and new motorcycles will be launched under mojo platform. The Mojo’s sales, service will go on normally. The Mojo to be a mid-capacity, niche motorcycle.
Owners will breathe peacefully after hearing to this.