Mahindra exits mass market 2-wheeler segment

Mahindra has decided to exit the mass market 2-wheeler segment. Going forward, the company will focus on the niche segment and is reportedly developing new products for this market. According to media reports, the company is planning to revive the Jawa brand and introduce new products under its name. It also owns the BSA brand and has a 51% stake in Peugeot Motorcycles. 

Mahindra forayed into the 2-wheeler segment when it acquired Kinetic Motors in 2008. Its initial offerings were based on existing Kinetic products. Its attempts to launch a commuter bike didn’t go to plan as early iterations of the Centuro were marred by mechanical issues. Further, the Gusto and Rodeo couldn't compete with bikes from established manufacturers such as Honda and TVS in the scooter segment.

According to SIAM data, Mahindra's two-wheeler sales were down 77% during the period of April-July 2017 compared to the same period last year. The company has the smallest market share of all manufacturers, which stood at 0.9% at the end of July 2017. However, its exports saw a growth of 17% during the period April-July 2017 and the company exported more units than it sold in India. That said, the company reported a loss of Rs. 471 crore last year. This has taken its accumulated losses to Rs. 2,876 crore as of end of last financial year.

Source: Money Control