Sunday, September 13, 2009
Mahindra in Two wheeler
After a long time I switched on the TV and was watching my favorite channel, NDTV Profit. I happened to see a news on Mahindra's entrance into Two Wheeler Market. I am just wondering whether it would be a good move from Mahindra, If so why? Where will they be more successful, in rural or Urban? What kind of people should they target? Before getting into the analysis,let me walk through how Mahindra entered into the Two wheeler industry. Mahindra acquired 80% of Kinetic Motors assets in the month of July. It has its own foot prints on all the automobiles segments other than two wheeler. Mahindra is a major player in Indian Automobile section, especially in Utility vehicles. It could be an easy entrance into the two wheeler segment. But I doubt, with outlook of Mahindra's products, whether Kinetic can make a difference to the company in this segment. Kinetic a successful company in low end two wheelers mainly focused on youth, and women. The moment one hear Mahindra, the first image could be a powerful vehicle. No one would ever think about a lower cc, colourful scooter from this manufacturer. Acquiring Kinetic could be a good decision, but to be successful in the two wheeler market they need to have a good differentiating Product strategy. Scorpio is the best example of that. They changed the Utility vehicle into Luxurious vehicle affordable for an Indian. Similar way they need to come up with rigid, high end two wheelers. Mahindra in two wheeler would be successful in rural since majority people are already familiarized with its products and services. More number of people are using two wheelers in the rural areas. With the current products of Mahindra Two wheelers, it will be successful neither in Urban, nor in Rural. The looks and the power does not satisfy the needs of the customers. Looking into the trend analysis, young generation prefers more of powerful motorcycles from Enfield which has some minor reflection of Harley. Royal Enfield has already established in India for years in the high end two wheeler industry. Mahindra Brand name suits more to a Man rather than to a woman. If Mahindra can manufacture high end powerful two wheelers it would be successful both in rural and Urban places. But if Mahindra applies good innovation tactics in motorcycle, it can be the leaders.