Mahindra & Mahindra (M&M), the country's leading utility vehicles maker that recently forayed into the two-wheeler space, is now eying to source parts from China for cost advantage.
While plans are yet to firmed up, talks are on with Chinese vendors, confirmed Anoop Mathur, president, two-wheeler sector of M&M. China is the largest two-wheeler market in the world, while India came in second. It has three 125cc scooters on offer now, the two new power scooters, Mahindra Rodeo and Duro apart from the Mahindra Flyte.
The three scooters are priced between Rs 38,300 and Rs 41,300 (ex-showroom, Ahmedabad). Though priced in the same range as the Hero Honda Pleasure and TVS Scooty Pep, these are 5 to 6 per cent cheaper than market leader Honda Activa, despite an engine that is 12 to 18 per cent larger.These are also 8 to 12 per cent cheaper than Suzuki Access. The company feels that the pricing is strategic and is sustainable. While Mathur declined to give out specific details, he did admit that soucing components from China could give it an advantage in terms of pricing.
As for, the existing Kinetic models that Mahindra now markets, including the Nova, Kine and 4S, the company is yet to take a decision on whether to phase these products out in the long run. Mahindra had acquired the assets of Kinetic Motors in 2008. Kinetic had launched Flyte, complete with a 125 cc engine, in 2007.
"We want to be present as an end-to-end player in the two-wheeler space,and would take a call on these Kinetic models depending on market feedback. We are looking at positioning our products uniquely", Mathur said. Currently, it is targeting the adult stylish male for the Rodeo, while the Duro could be appealing to the entire family and the Flyte is targeted at the female commuter.
"In the last 40 days since our launch, we have sold around 7000 units on an average per month", claimed Sanjay Mittal, vice president, sales and customer care of Mahindra two-wheelers. The company currently has a manufacturing capacity of five lakh two-wheelers per annum at Pithampur, near Indore in Madhya Pradesh. It has already announced plans to come up with a motorcycle in 2010 that will be manufactured at the same site.
Mahindra two wheelers now has a dealership base of 325, and plans to take it up to 375 by the end of the fiscal. "Around 200 Kinetic dealers came in the fray and the rest are our already existing tractor and utility vehicle dealers.", Mittal said. The two-wheeler market has been clocking a 15 per cent growth this fiscal, and is currently dominated by Honda Motorcycles and Scooters India with a 53 per cent share followed by TVS & Hero Honda with 21 per cent and 14 per cent respectively and Suzuki with eight per cent.
