M&M eyes exports to boost 2-wheeler biz
Co launches its first 110-cc scooter, plans shipments to Nepal this week; eyes LatAm, Africa alsoautos Updated: Sep 30, 2014 16:08 IST
Mahindra & Mahindra ( M&M ) Two Wheelerson Monday launched its globally positioned 110-cc scooter, Gusto, with aggressive export plans and hopes of claiming a bigger share of the fast-growing domestic scooter market.
Despite being in the twowheeler market for six years now, M&M still rides on the fringes. In August it sold 12,598 units; total two-wheeler sales was around 1.3 million units, according to industry body SIAM.
Mahindra’s two-wheeler business also continues to make losses. At the end of 2011-12, it had accumulated losses of Rs. 527 crore.
However, president of M&M’s automotive and farm equipment division, Pawan Goenka, is not worried — for now. “Our first priority is not financial break-even. It’s a long-haul business. So we are first focusing on getting the product and volume. Once that happens, the profits will come. We think that we need to get to a volume of 1 million a year or about 80,000 a month (domestic and exports),” said Goenka.
M&M will star t expor ts almost immediately, shipping the Gusto to Nepal. “We begin exports to Nepal in the next couple of days. We will launch it in other neighbouring countries in January-March and go to Africa and Latin America in the second quarter next year,” said Rajesh Jejurikar, CEO, farm equipment and two-wheeler division.
Jejurikar echoed Goenka that it was not a target but a scale that the company would need to reach to be a significant player in the market. He was hopeful that M&M’s best-seller, the Centuro bike, and the Gusto will help boost volumes.
Gusto is M&M’s first scooter in the 110 cc segment and the first to be developed indigenously at its R&D centre in Pune. It will be sold in two variants priced at Rs. 43,000 and Rs. 47,000 (exshowroom Delhi). Prices will be eventually increased, probably after Diwali, the company added.
First Published: Sep 26, 2014 22:15 IST