In a bid to improve sales and expand network across the country, Mahindra will be retailing its two-wheelers via the company’s tractor and UV dealerships to address demand in rural areas.
Mahindra two-wheelers is planning an on-slaught of new launches that will hit the market in the coming months. Until then the company is solely surviving on the decently selling Centuro, while its range of scooters are selling moderately against competition. With the company’s newest offering ‘Gusto’ 110cc scooter confirmed for a month end launch (29th September), Mahindra is planning to expand its two-wheeler market to rural areas by using its expansive farm-equipment and Utility Vehicle (UV) dealership base to retail the new range of motorcycles and scooters alongside the tractors, Boleros and Scorpios in its portfolio.
Mahindra currently has around 500 two-wheeler dealerships across the country that are mostly located in urban and semi-urban areas. The company believes that due to high buyer overlapping, people looking for a Scorpio or a tractor will also be in need for a scooter or a motorcycle as an alternate commuting medium. As a result, the company is opting to retail via existing dealerships, instead of investing in creating new outlets for its two-wheeler range. Mahindra plans to retail its two-wheelers initially through 150 dealers, of which at least 120 dealers will be in rural areas. If successful, the number of dealerships will increase giving the company access to the volume centric rural region, while cost savings will be massive.
The upcoming Gusto 110cc scooter is an important product for Mahindra and will establish the company in the mass market scooter segment rivalling against the Honda Activa, TVS Wego, Suzuki Let’s and the likes in the segment. The Gusto will also be retailed in overseas markets with Mahindra planning to ship the scooter to Latin America, Africa and South Asia over the next few months. The company has plans to launch new commuter versions of the Centuro in the coming months, while the Mojo 300 will be its flagship product (with the launch scheduled 100 light years away).