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| M&M to launch motorcycle next year |
| BS Reporter / Chennai Nov 06, 2009, 00:28 IST |
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Mahindra and Mahindra (M&M) plans to launch a motorcycle next year. The company is also looking at acquisitions in the electronic scooter space.
To increase its penetration, the company is planning to tie-up with cooperatives and grameen banks. The auto major had entered the two-wheeler market market by acquiring the assets of Pune-based scooter manufacturer Kinetic Motor in 2008.
Speaking to reporters after launching their new scooter brands, Rodeo and Duro, the vice-president, sales and customer care, Sanjiv Mittal, said the company was working on motorcycle models and the first one would be launched in 2010.
The vehicle is in the developmental stage and the objective was to become a full-fledged two-wheeler player.
Mittal said the company’s Madhya Pradesh facility would be sufficient to meet the company’s requirements.
“We just need some small investment to install some machines and the facility can produce up to 400,000 vehicles,” he said.
He added the company had sold around 7,000 scooters last month, of which Rodeo and Duro accounted for 5,600 units and Flyte accounted for the rest. He declined to comment on the sales target for 2009-10. The company is in the process of ramping up its two-wheeler distribution network by adding 50 more dealers.
The company has 325 dealerships and plans to increase the network to 375 dealers by the end of this financial year, Mittal said.
To increase penetration and to address any financial issues, the company planned to tie up with co-operatives and grameen banks for both finance and marketing.
The company had already tied-up with five finance institutions, he said.
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