Mahindra 2Wheelers has re-entered the motorcycle market after a year with the Pantero and Centuro and is also exploring export potential,
Mahindra 2 Wheelers has re-ignited its journey as a motorcycle maker with the introduction of two 110cc motorcycles – Pantero and Centuro. The move comes a year after it recalled its first bike – Stallio – from the market. The Pantero reminds one of the Stallio, but Mahindra 2 Wheelers’ R&D head P S Ashok points out, “Any recall of the Stallio will be incidental because of the styling in the front and rear. The bore and the stroke, in terms of cubic capacity, is the same. The valvetrain, thermodynamics, the exhaust and intake system, everything is different. There is hardly anything that is same (as the Stallio).”
The Pantero will be commercially launched later this month. The last time around, the Stallio was promoted by its brand ambassador Aamir Khan. This time though there is no brand ambassador as the actor is off endorsing products for now, according to the company.
The other offering, the Centuro, is being positioned a rung higher in the market. Various features from Mahindra & Mahindra’s (M&M) automotive sector like flip-key, remote lock, and follow-me-home lights have found their way into the Centuro, which will hit the market in February.
The two bikes will meet fierce competition in the market from established players like Hero’s Splendor and Passion and new players like Honda’s Dream Yuga and Bajaj’s just-launched Discover 100T.
Both the Pantero and Centuro will be launched in export markets almost simultaneously as the domestic market and steps to obtain the necessary approvals have already begun. “I am quite encouraged from the initial feedback and the positive response these products have received after being showcased. We will have a significant foray into the export markets with these products,” Anoop Mathur, president, Mahindra 2 Wheelers, told Autocar Professional.
Following these commuter bikes will be the Mojo, a 300cc premium bike slated for rollout in 2013-14. The Mojo was initially planned for a 2011 launch. The company says efforts are underway in full swing to ensure the Mojo meets success. “Certainly, a lot of mechanical and electrical features will be very much more robust and enhanced (over the showcased product). Styling is also tweaked, based on feedback. Overall, we are not going to make a dramatic change. But in terms of performance, we are not leaving any stone unturned,” says Mathur.
In investment mode
M&M has spent Rs 100 crore on its two-wheeler R&D activities so far and the business will be in investment mode for some more time. That will be critical to ensure a respectable position for itself in the two-wheeler market. More so, as M&M has divested its stake in Engines Engineering, a leading European motorcycle design company which has now struck an alliance with Hero MotoCorp.
In terms of market share, Mahindra 2 Wheelers has managed 3.91 percent during April-December 2012, with a presence only in the scooter segment and selling 85,101 two-wheelers.
Building its scooter portfolio will be important as the segment has posted healthy growth, albeit on a much smaller base, than motorcycles. The company is to launch a variant of the Rodeo shortly, and will add two more new scooters during 2013-14. What's more, it aims to reflect the two-wheeler market’s overall scooter-motorcycle sales ratio.
Group synergy
Mahindra 2 Wheelers, a marginal player currently, will tap various businesses of the Mahindra Group to boost its growth curve. While Mahindra Finance will provide it financial assistance, it is tapping the automotive and farm equipment sectors for enhancing engineering and expanding its sales network reach. M&M has a strong presence in rural and semi-urban markets with its tractor and utility vehicles businesses.
“We are looking at increasing the depth of our network of 600 touch-points. We will now go to where our natural strength lies – rural India – and we will look at creating our strength in urban India,” says Viren Popli, senior vice-president, marketing, sales and customer care, Mahindra 2 Wheelers.
Given the increasing aggression of other two-wheeler OEMs, it may pay the two-wheeler business to play to the inherent strengths of M&M.
SUMANTRA BAROOAH