Mahindra & Mahindra Ltd (M&M) has launched the Flyte as its first two-wheeler offering after the acquisition of the business assets of Kinetic Motor Company in July 2008.
With this foray, M&M now caters to customers across a wide portfolio of product categories ranging from two-wheelers and three-wheelers to utility vehicles, commercial vehicles and passenger cars. M&M has been evaluating an entry into the low-cost entry level two-wheeler segment with an eye on the rural markets where it has a strong hold through its farm equipment unit, Mahindra Tractors.
According to Anoop Mathur, president - two-wheeler business, M&M, “We use the design and engineering services of all our affiliates including the Italy-based design house Engines Engineering in all our product development work to give technologically superior products to our consumers. Engines Engineering has carried out a complete technical evaluation of the Flyte. We have bought the technology from SYM of Taiwan under a technical agreement. We source parts from the best suppliers, both domestic and international. The Flyte is made in our Pithampur plant near Indore, which has all the modern manufacturing facilities along with very stringent quality systems and procedures.”
Key highlights of the 125cc gearless Flyte include front fuelling, largest storage space in its class and 4-in-1 anti-theft key. Priced at Rs 39,500 (ex-showroom, Pune), the scooter will be available at 238 dealerships in Tier II and III cities. This network will be increased over a period of time.
Strategic move
M&M made the foray into two-wheelers as it saw the acquisition of Kinetic Motor as a strategic fit into its two-wheeler business strategy. The company plans to design and market a range of scooters and high-end motorcycles for both the Indian and global markets.
Scooters are M&M's entry point into the Indian market and will be an important part of the overall two-wheeler product portfolio. There are a number of macro environmental trends which make the scooter market especially attractive to the company. These include a younger, more affluent customer base with a significant number of empowered women and increased demand in Tier II cities and small towns.