Mahindra Two Wheelers To Focus On Rural Market

By Rajkamal

Mahindra Two Wheelers Ltd (MTWL), a subsidiary of Mahindra and Mahindra, ventured into the two wheeler business in 2008 when they took over the Kinetic motor company. Mahindra with Sanyang Industry Company (SYM) develop the scooters and Italy based engineering to do their research and product design.

In latest news, Mahindra will concentrate sales of two-wheelers for the rural crowd. Mahindra have come to this decision as they are fairly new to the two-wheeler segment and are selling low numbers.

With players like Hero motoCorp who sold 6 lakh units last May, Mahindra managed a mere 16,824 units. The biggest challenge Mahindra is facing now is that even if they come up with new technology, companies like Hero MotoCorp can easily keep up and outpace them in the current market.

Also Read: Mahindra To Determine Applicablity Of Opened Tesla Patents

However, Mahindra have made a clear choice and will target their two-wheeler sales for the rural crowd, as they are a bigger mass of customers.

Rajesh Jejurikar, who is in charge of the tractor department, has now taken over Mahindra's two-wheeler business as well. Jejurikar, known as the "executioner" than "planner", says, "Mahindra as a company, we build ourselves one step at a time. We would rather make multi Rs.1,000 crore bets than one Rs.10,000 crore bet". He also added "Mahindra feel if a farmer owns a 50 acre farm or bigger, he will still ride a motorcycle."

Experts feel that Mahindra is venturing into a world that is dominated by Hero MotoCorp and they could easily be muscled out if the strategy is wrong. With the decision made, will Mahindra's two-wheeler business boom? The future holds the answer.

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Article Published On: Friday, June 27, 2014, 12:55 [IST]
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