Mahindra & Mahindra on Monday said it will have to sell at least 80,000 two-wheelers a month to break even in three years? time. The company, which is looking to build its product portfolio, sold 11,178 two-wheelers in August 2014, a decline of 27% compared with the year-ago period. During the fiscal so far, the company sold 68,651 vehicles, a rise of 37% over the year-ago period.
?It is a long-term business and our current focus is to build volumes. With 80,000 vehicles per month we could look at profitability in 2.5-3 years time,? said Pawan Goenka, executive director, M&M.
Though late in the market, M&M entered the entry-level segment in the scooter space with the launch of Gusto, which is also its first scooter developed indigenously at the company’s R&D facility in Pune, six years after it acquired Kinetic Two Wheelers. The company has priced the Gusto at Rs 43,000 (ex-showroom, Delhi), which is an introductory price and cheaper than nearest rival Honda by Rs 3,600.
After Gusto, M&M is looking to launch a 125 cc scooter in 18-months time.