Mahindra is in talk with over a dozen foreign manufacturers across the Europe and the US for purpose of acquisition, to try and get a hold over the Indian two-wheeler segment.
Mahindra has been trying to buy the rights to a number of heritage brands across Europe and the US. This move most probably comes after it was unable to make a considerable impact in the Indian two-wheeler market with its current products. Mahindra is in talks with brands like BSA and Norton, which are icons of the western world. This will probably help Mahindra perform better in the higher end of the two-wheeler market.
A year ago, Mahindra managed to acquire a 51% stake in Peugeot and since then has been in talks with over a dozen foreign manufacturers. We should get additional information and confirmed details in three to six months’ time. It looks like Mahindra plans to acquire iconic brand names and revive the ones like BSA which stopped manufacturing in the 1970s. The R&D will be carried out in collaboration with Peugeot taking advantage of their expertise.
Acquisition of these brands will make it easier for Mahindra to expand their portfolio across segments. The manufacturer has been unable to make a dent in the two-wheeler market. It still remains as one of the niche players in the market as it still has about 1% market share. While there seems to be nothing wrong with its products, Mahindra hasn’t been able to establish itself. It struggles to sell its two-wheelers against manufacturers like Hero, Honda and Bajaj, who have been in the market for quite a while now.
Mahindra first entered the market with its acquisition of the Kinetic brand. With constantly declining sales throughout the years, this seems to be a last ditch effort by Mahindra to increase its market share. Things are looking good as the recently launched Mojo has been off to a good start.
Mahindra Looks To Acquire Foreign Brands
– Mahindra has been trying to acquire rights to various iconic foreign brands
– It looks to acquire iconic brands to help it increase its product range and market share
– Mahindra currently has just 1% of the market share