To boost its presence in the two-wheeler market in the country, the Mahindra Group is looking to buy the rights to iconic brands like BSA or Norton, according to reports.
Industry analysts state that with this move the company aims to make a dent in the top end of the motorcycle market. The company is in talks with at least half a dozen brands in various parts of Europe and the US, it is learnt.
It may be recalled that the group had in 2015 acquired a stake in Peugeot Motorcycles for around Rs 216 crore. Industry sources claim that the company is currently considering two companies - Norton and BSA. UK businessman Stuart Garner had bought the Norton brand in 2008 and the company makes a limited number of bikes. BSA stopped making motorcycles in the early 1970s.
Industry sources state that a deal is likely to be announced over the next three-six months.
Mahindra’s strategy appears to be to buy and revive brands besides infusing some of its DNA into future products. Mahindra will use its in-house R&D capabilities as well as Peugeot's engineering expertise to develop these vehicles.
According to sources, Mahindra will find it easier to offer a differentiated product in the premium segment than in the mass market and the strategy of acquiring a heritage brand stems from that belief.
Mahindra is likely to finalise plans for launching the Peugeot brand in India next month and will look at leveraging this to define its strategy over the next three years.
Mahindra & Mahindra acquired Kinetic in 2010, but has a market share of less than 1% today.
Source : BS Motoring