M&M plans foray into motorbikes

Mahindra & Mahindra (M&M), the tractors to utility vehicles manufacturer, is exploring the possibility of foraying into the motorcycles market.

M&M has already started testing motorcycles sourced from a foreign two-wheeler company. The motorcycle has been tested on Mumbai's roads.

"We are looking at the two-wheeler market and have started testing some vehicles," said Keshub Mahindra, chairman of Mahindra & Mahindra.

But he declined to share any more details. M&M, however, may be some time away from commercial launch.

One of the motorbikes Business Standard spotted on the roads was a low-powered one, around 100-110 cc, with a crude 'M' sign embossed on the fuel tank.

When contacted, an M&M spokesperson refused to divulge any details. "We continually test different vehicles for a variety of reasons. Every vehicle we test does not make it to commercial launch," he said.

Though riding into the motorcycles market represents a radical change in terms of M&M's existing product portfolio, some view it as a logical extension to the company's foray into the three-wheeler market in 2001.

Sources within the company think that this move fits into M&M's plans of becoming a complete transportation solutions provider.

Industry analysts, though are sceptical about the company's ambitious departure from its traditional line of business.

"Two-wheelers are a different ball game. Mahindra's core competencies are not in that market and anyway the market is too cluttered for it to be able to make significant headway," said an industry observer.

The motorcycle segment accounts for more than 70 per cent of the total two-wheeler market in India and has been growing by 13 per cent in the first nine months of the year. Even a traditional scooter maker like Bajaj Auto has shifted its focus to motorbikes.

M&M is the country's largest tractor manufacturer and its Scorpio has been doing well in the upper end of the utility vehicles segment.