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Mahindra and Mahindra, which entered the two-wheeler business six years ago, will intensify efforts to increase its market share to 5 per cent.
“The two-wheeler business had small volumes last year. We hope to increase the market share this year to a meaningful scale. A minimum 5 per cent market share is what we want to achieve eventually,” said Pawan Goenka, executive director, M&M.
An investor relations statement from the company said factors affecting its two-wheeler performance were mainly internal. “Now with two good products in the portfolio, one motorcycle and the other scooter, the effort will be to achieve a monthly volume of 30,000-35,000 in 2015-16,” it added.
In April, M&M sold 11,502 two-wheelers, according to the Society of Indian Automobile Manufacturers, and had a market share of below 1 per cent. The two-wheeler market is dominated by Hero MotoCorp, Honda Motorcycle & Scooter India, and Bajaj Auto.
“We are not making any investment this year in two-wheeler products. But there will be investment in marketing,” Goenka said without specifying the amount. The company will, however, launch a premium motorcycle, Mojo, next month.
M&M will unveil a television commercial next month showcasing its range of products, from tractors to the Scorpio to two-wheelers. It will show how a family that owns a M&M tractor or utility vehicle is also buying a company two-wheeler.
“M&M is a late entrant in the crowded two-wheeler market and gaining market share was not simple. There were issues with the refurbished Kinetic products the company was marketing initially. The company has done its own research and launched products like the Centuro and Gusto. These are seeing a good response,” said a Delhi-based dealer of M&M’s two-wheelers.
M&M entered the two-wheeler business with the acquisition of the business assets of the Pune-based Kinetic Motor Company in 2008. In October 2014, the company also acquired a 51 per cent stake in French firm Peugeot Motorcycles.
EXPANDING MARKET SHARE
- M&M plans to increase its market share to 5 per cent this year
- The company plans to achieve a monthly volume of 30,000-35,000 in 2015-16
- In April this year, M&M sold 11,502 two-wheelers
