M&M bets on marketing to rev up its two-wheeler business

Mahindra and Mahindra, which entered the two-wheeler business six years ago, will intensify marketing efforts to grow its market share by five-fold to about 5%.

“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% market share is what we want to achieve eventually”, said Pawan Goenka, executive director of the company.  

A March investor relations statement from the company said it has not done very well in the two-wheeler segment. The factors affected the performance were mainly internal, it added.  “Now with two good products in its portfolio, one in the motorcycle and the other in the scooter segment, the effort would be to achieve a monthly volume of 30,000 to 35,000 in FY16”.

In April, Mahindra sold 11,502 two-wheelers, according to data of the Society of Indian Automobiles and had a minuscule market share of a tad below 1% share. The two-wheeler market is dominated by Hero MotoCorp, Honda Motorcycle & Scooter India and Bajaj Auto.

"We are not making any investment this year on new two-wheeler products. But there will be investment in marketing," Goenka added without specifying the amount. The company will, however, launch a premium bike 'Mojo' next month, it is learnt.

It is also learnt that Mahindra will launch a TV commercial next month, showcasing the entire range of products from a tractor to a Scorpio to a two-wheeler. It will show how a family that owns a Mahindra tractor or a SUV, is also buying a two-wheeler from the company.   

“Mahindra is a late entrant in the crowded two–wheeler market and therefore gaining market share was not simple. There were issues with the refurbished (Kinetic) products that the company was marketing inititally. The company has done its own R&D and launched products like Centuro and Gusto. These are seeing a good response”, said a Delhi-based dealer of Mahindra’s two-wheelers who sells 70-80 two-wheelers every month.  Mahindra entered the two-wheeler business with the acquisition of the business assets of Pune-based Kinetic Motor Company in 2008. In October 2014, the company also acquired a 51% stake in French firm Peugeot Motorcycles. “Peugeot will never come to India in the commuter bike segment. You will never have Rs 40,000-50,000 product there. It will be in the premium price category”, Goenka added.