Monday, April 19, 2010

M&M Eyes Double-Digit Growth in 2-Wheeler Biz

Mahindra & Mahindra (M&M) is eyeing a double-digit growth in its two-wheeler business in the next two years and will also explore the inorganic growth route for expansion, a senior company official has said.

We are growing and will continue to grow to make M&M a strong brand in the two-wheeler segment. We are targeting a double-digit growth in the next two years by grabbing the opportunities which will enable us to grow faster, the Mahindra & Mahindra (two -wheeler sector), President, Mr Anoop Mathur, told PTI here.

M&M, which took over the two-wheeler business of Kinetic Motor in 2008, has already launched three 125-cc scooters two power scooters, Mahindra Rodeo and Duro and the Mahindra Flyte.

We have already achieved a milestone in the two-wheeler segment after selling 10,000 units within four months of launch. We are very optimistic about the future, Mr Mathur said.

The company currently has an eight per cent market share in the scooter segment and is looking to increase it this year.

We have an eight per cent market share in the two-wheeler (scooter) segment. As the industry is growing around 26 per cent, we are very positive of expanding our share in the years ahead, he said.



The company has a capacity to make 5-6 lakh units per year and plans to increase this in the future. We have been managing the current demand with the present capacity, but as volumes increase over the next two years, we too would have to add capacity, Mr Mathur said.



The company has 350 dealers pan-India for its two-wheelers and plans to add 50 more this fiscal. We are eyeing the small towns where the potential is immense. We plan to add at least 50 more dealers, primarily in these locations, by FY 11, he said.


M&M, which is currently exporting two-wheelers to Bangladesh, Nepal and South Asia, is eyeing more global markets with a view to become a global player. We will be exporting our two-wheelers to more countries in the coming days we want to emerge as a global player, he said.

PTI

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