Mahindra opens 100-crore 2-wheeler R&D facility in Pune

Mahindra Group Vice Chairman & Managing Director Anand Mahindra yesterday inaugurated a 2-wheeler R&D facility in MIDC, Chinchwad near Pune. Team-BHP was invited along with several representatives of the mainstream and online media to tour the new facility.

Highlights:

The facility has been set up with an investment of Rs. 100 crore.

Two new motorcycle engines were unveiled – the 110cc indigenously developed air-cooled SOHC drivetrain that will be equipped in the Stallio and the 300cc liquid-cooled 4-valve DOHC engine that will power the Mojo. These, along with a “surprise” third motorcycle (rumoured to be the 125cc Cevalo but unconfirmed by the company’s executives) will complete their planned launches of motorcycles for FY 2012-13.

The company claims it is meeting 200-300 customers each week to gather data on consumer needs and requirements. The insights will be routed into R&D.

Mahindra says the Pune facility already has 175 dedicated employees including IIT hires. It is headed by PS Ashok, formerly with M&M’s Automobile R&D, who has been associated with projects such as the Maxximo and the Gio.

Technology Driven

The Duro Micro Hybrid, touted to save 5% in fuel expenditures and reduce 7% in emissions, is derived heavily from the Micro Hybrid technology that is commercially available on the Scorpio. The company says that more such “ecosystem benefits” can be derived from Mahindra’s “neural network” of blossoming R&D centres. (Link to related thread (Mahindra Research Valley - an R&D centre - inaugurated in Chennai))

The Duro DZ and the recently launched Rodeo RZ will be the first products of the “technology driven innovation” approach being adopted by Mahindra.

It also appears that the success of the XUV 5OO has convinced the company that “technology-driven products” are the way forward and the new R&D facility is a step in replicating this success in the 2-wheeler segment. Mahindra entered the 2-wheeler business three and a half years ago with a technology partnership with SYM by launching the Flyte 125cc scooterette.

Anand Mahindra in his address revealed a vision to make Mahindra a “mobility brand” spanning every aspect of the customer lifecycle, from entry (scooterettes and entry-level motorbikes) to maturity (cars and SUVs). Interestingly he deflected any questions on the recession in the automobile industry, saying he was there to speak about two wheelers only.

The company executives repeatedly downplayed suggestions that the timing of its market entry was ill-timed and claim they will invest 500cr in 2-wheeler R&D alone over the next five years while targeting an aggressive 20,000 crore top line from this business by the year 2020. (Link to related thread (Mahindra 2-Wheelers @ Auto Expo 2012))