Domestic automaker Mahindra has reportedly decided to quit operations in the Indian mass market 2-wheeler segment due to enormous losses.

Mahindra Mojo Long Term
Mahindra’s exports, which are higher than domestic sales, continue to go unhindered

Back in 2008, Mahindra acquired Italian brand Kinetic in a bid to capture a chunk of the lucrative 2-wheeler market. On the lines of its success with 4-wheelers, the Pune-based manufacturer had high hopes with this venture. However, Mahindra products failed to create an impact in our market leading to losses for the company year after year. Mahindra is now reported to have exited the mass market 2-wheeler segment and will focus on catering to the niche segment.

Competition in the mass market segment is stern with Honda’s scooter line-up sitting on a major share of the scooter market. Hero enjoys a similar monopoly in the commuter motorcycle segment. Add to that, the general public is yet to associate Mahindra & Mahindra with 2-wheelers. In spite of multiple attempts, Mahindra products managed to capture a miniscule 0.09% of market share. July 2017 marked a miserable total sale of 683 units for the brand.

Mahindra 2-wheelers has faced losses since the past 9 years of its operations. Recorded loss of Rs. 471 crores in the last fiscal took the toll to Rs. 2876 crores. Currently, the company has the Duro, Gusto, Rodeo, Centuro and Mojo in its 2-wheeler portfolio. Now, starting by improving its sports tourer Mojo, the brand plans to target the niche segment while the Duro, Gusto, Rodeo and Centuro will become history. The acquisition of BSA and Peugeot further strengthens their claim of entering the premium segment.

Mahindra Exits Mass Market 2-Wheeler Segment

– Mahindra quits operations in domestic mass market segment, exports continue
– Records losses to the tune of Rs. 2876 crores since inception
– To focus on premium products, starting with the Mojo
– Company has 0.09% market share in India

2016 Mahindra Gusto 125 Front
Mahindra dealers continue to sell existing stocks of current line-up

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