Mahindra & Mahindra (M&M) today announced that it has received shareholders approval for demerging the two wheeler business ‘Mahindra Two Wheelers (MTWL)’ with itself. This decision will allow it to focus on its niche premium two-wheeler offering.
Mahindra already caters to a number of different segments in the automotive space – tractors, passenger and UVs, commercial vehicles including three-wheelers and Trucks & Buses, will now try to utilise its design, develop and sourcing capabilities to focus on catering to premium Two-wheeler segment. According to the regulatory filing made by M&M, the decision will also help them enhance its focus on the spare business.
The proposed restructuring was announced by the Mahindra board last year, that saw some hard-pressing decisions in terms of reduction in marketing spend by 80 percent, reduction in manpower by 50 percent, along with a new product plan.
MTWL currently has five motorcycle (Centuro) and four scooter (Gusto, Rodeo and Duro) offering. It has seen struggling sales in the domestic market, it sold 1,925 units in September (-48.94% YoY) taking its total sales for April-September 2017 to 9,359 units (-71.78% YoY).
The company has been in the forefront for new electric mobility across its products offering including PVs, tractors, three-wheeler and last month Autocar Professional had revealed that the company was working on electrification of its existing scooter line. It is understood that the new e-scooter will be on one of its successful scooter offering the Gusto model’s platform.
Also read : Mahindra launches Gusto RS at Rs 48,180