Mahindra Two Wheelers To Launch Three New Models In 2014

Mahindra has not had as much success with its two wheelers as it has had with its SUVs and commercial vehicles. The company is still an insignificant player in the motorcycle and scooter segment in India, forming only a fraction of the entire market.

The company registered a loss of INR 500 crore in FY13. That's likely to drop to INR 200 crore in FY14, which was mainly due to the relative success of the Centuro 110cc motorcycle.

Related: Mahindra Developing A 160cc Motorcycle

Mahindra's problems lies with building a strong trust with customers, which is yet to happen due to the lack of dealerships. However, the numbers are constantly on the growth. The other factor that will help in improving Mahindra Two Wheelers' prospects are fresh new product range, something it currently lacks.

Mahindra plans to expand its product portfolio in the coming few years with the launch of 9 new models. These will range from mass market to premium products.

In the short term, which is in 2014, the company has 2 to 3 new model launches planned, both in the scooter and motorcycle segment, as per Pawan Goenka's own words, as reported by ET. At least one motorcycle is expected to belong to the 150cc category.

Mahindra is likely to put more emphasis on new scooter models since this segment is expected to outpace commuter motorcycle sales in the coming months.

Goenka said that they need at least 2-3 new products that can achieve 25,000 to 30,000 unit sales every month for them to achieve their target of sales of a million vehicles per annum.

Mahindra Two Wheeler is banking on its export markets as well to bring in additional 50,000 to 60,000 unit sales/month to compensate for its poor local sales.

Mahindra also hopes that its well known tractor business in rural areas will help it's two wheeler business to a large extent.

Mahindra Two Wheelers has not showcased any new products for long time, except for the Mojo 300, which is yet to see daylight.