Mahindra and Mahindra to reevaluate its motorcycle business

Mahindra said that discounts have not gone up at the cost of profit margins and it is considering many options for 2-wheeler business including dropping brand 'M&M'.

By: | Updated: August 30, 2016 5:14 PM
Mahindra-Re-L Expecting to grow at better than industry rate of growth, M&M said that passenger vehicle sales are likely to grow at 9-10% this fiscal.

India's leading vehicle manufacturer Mahindra and Mahindra (M&M) is planning to re-evaluate its motorcycle strategy, reported CNBC TV18. The company will be focusing more on premium motorcycles other than the 100cc­110cc segment. Mahindra said that discounts have not gone up at the cost of profit margins and it is considering many options for 2-wheeler business including dropping brand 'M&M'. Mahindra and Mahindra has also initiated an internal study on the two­wheeler segment and will take a decision on this in the coming weeks. The company said that 1% green cess on diesel vehicles introduced by the Supreme Court in Delhi NCR will not deter customers from buying cars above 2000cc. In an earnings call last month, the company said that it would introduce petrol and diesel engines for all its major models over the next three to four years. On a standalone basis, M&M had reported a net profit increase by 12.36 per cent to Rs 955.21 crore for the first quarter ended June 30. Expecting to grow at better than industry rate of growth, M&M said that passenger vehicle sales are likely to grow at 9-10% this fiscal.

The company is also focusing big on introducing latest technology in its vehicles. Last week, the utility vehicle maker launched DiGiSense, a technology solution aimed at empowering owners, fleet operators, drivers, dealers and service teams to access information about their vehicles on a real-time basis.

The automaker is also in talks with taxi aggregators Uber and Ola for an alliance. This alliance will be offering services such as assistance in vehicle leasing and financing, deal in second hand cars and providing insurance services. M&M also plans to launch hybrid cars by 2022. Various automakers have earlier invested in taxi aggregators. Toyota bought small stake in Uber, Volkswagen invested in Gett and General Motors has a stake in Lyft.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.