Friday, March 26, 2010
M&M to tap high-end motorcycle segment, may tie-up with a European bike manufacturer
Mahindra & Mahindra (M&M), which entered the two-wheeler market in India in 2009 after buying out the Pune-based Kinetic Motors, may soon enter the high-end motorcycle segment in the country. While Mahindra Two-Wheelers currently only has some scooters in its line-up, the company is said to be exploring the option of tying up with a foreign motorcycle manufacturer in order to get access to bigger, sportier bikes for the Indian market.
According to reports in the media, M&M is talking to some bike manufacturers in the UK and Italy, including Triumph and Moto Guzzi, both of which are keen to enter the Indian market.
Mahindra Two-Wheelers, which sold 10,000 units in January this year, has a sales target of around 15,000 units per month from April this year. In order to boost sales and enter the motorcycles segment, the company is working with Taiwanese bikes manufacturer, SYM, with which it’s developing an entry-level bike which will be powered by a 110-125cc engine. The company is also sourcing some components from China, in order to keep costs as low as possible.