The Mahindra Group is billed at USD 19 billion currently but their motorcycle division hasn’t seen a single buck as profit on any year ever since its inception. Except for the 2012 launch Mojo, the rest of its housemates never entered the competition seriously and have been a disaster.
In a bid to tap the newfound interests in the sports tourer segment, Mahindra Two Wheelers is on the path to growing its premium motorcycle brand, Mojo. Doing so, the motorcycle division has officially withdrawn from the domestic mass market segment, and are looking to enter into the unknown.
The Mumbai based M&M officially said,
This comes after SIAM reported of the brand’s mere 0.09 percent of market share by the end of July 2017.
Even after India becoming the largest market for two wheelers in the world, Mahindra somehow saw the bottom of the sales charts since there were not many investments for product development according to the company. Instead, the two wheeler division underwent a loss to the tune of ₹ 2,876 crores in its entire tenure.
Seeing all these red flags, the company seems to have begun thinking outside the box and devised an ambitious plan to cater the niche segment of the market. Luckily, the brand had made a few right moves in the past and will take it from there.
Like on a shopping spree, Mahindra is on a roll. It entered the market after buying out Kinetic is 2010, and since then it has acquitted Ssangyong in 2011, controlling stakes at Pininfarina (people who have designed Ferraris, Maseratis and Alfa Romeos), Reva Electric Car Company and recently 51% stake at Peugeot motorcycles.
Most recently, Mahindra purchased 100% (1.2 lakhs) shares of the iconic British biker BSA Motorcycles for a staggering 28 crores. This will give the required boost to Mahindra’s two wheeler division which is yet to make its presence strongly felt in the Indian market after the Centuro and Gusto have failed to make a mark.
Along with this, they have also bought rights to the JAWA brand to launch new products which “will capture the character, DNA and ethos of these brands”, and that it will “develop products that are in sync with the DNA of the BSA and Jawa brands”.
Reviving itself to be a lifestyle brand, Mahindra will manufacture Jawa bikes at its Pithampur plant and work for this is already underway. Of course, we hope for a true “renaissance” here, perhaps with tapping the opportunity to re-enter the market with due seriousness and quality that the brand deserves and give enthusiasts joy of owning a legendary brand and becoming a part of JAWA’s rich history.
In the motorsport arena too Mahindra has made a few changes with shifting all its focus onto electric vehicle Championships rather and hence will end its Moto3 tenure with the end of the 2017 season.Looks like Mahindra has smelt huge potential here and wants to repeat its winning streaks as much as its four-wheeled electric car racing does.