Mahindra 2 Wheelers betting on indigenous R&D to beat rivals
JAIPUR: Mahindra & Mahindra has spruced up its motorcycle portfolio
after a gap of about two years on Monday with the launch of the Centuro bike. Anand Mahindra, chairman of the $16.5-billion M&M group, said Mahindra 2 Wheelers has learnt from its past mistakes and is betting on indigenous R&D capability to take on Japanese and Indian rivals.
"We have proven that the indigenous technology works," he said. "When we entered the automotive business in 1990s there were lot of skeptics as to how would succeed without an international partner on our own. Look where we are, I am still in front of you and it is 2013." Admitting that the stop-start entry into motorcycles with the Stallio motorcycle—which was withdrawn within six months of launch in 2010-11 due to quality issues— was a mistake, Mahindra said the company has since set up an R&D centre in Pune and has already investedRs 700 crore in the two-wheeler business.
"Lessons you learn are more valuable. What is critical for us is how quickly we learn from our mistakes. The strategies are based on rational and we do have a right to win and that's why we are investing in two wheelers," he said. According to reports, at the end of fiscal 2011-12, Mahindra 2 Wheelers' accumulated losses stood at Rs 527 crore, based on the data available with Registrar of Companies data. It posted a loss of Rs 238.34 crore in FY12, while total revenues in the same fiscal fell 14.5% toRs 443.07 crore from Rs 518.54 crore in FY11. The company, however, is confident of a long-term potential of the business and will continue to invest in it. The company plans to launch 10 models including refreshes over the next two and half years.
"We have proven that the indigenous technology works," he said. "When we entered the automotive business in 1990s there were lot of skeptics as to how would succeed without an international partner on our own. Look where we are, I am still in front of you and it is 2013." Admitting that the stop-start entry into motorcycles with the Stallio motorcycle—which was withdrawn within six months of launch in 2010-11 due to quality issues— was a mistake, Mahindra said the company has since set up an R&D centre in Pune and has already investedRs 700 crore in the two-wheeler business.
"Lessons you learn are more valuable. What is critical for us is how quickly we learn from our mistakes. The strategies are based on rational and we do have a right to win and that's why we are investing in two wheelers," he said. According to reports, at the end of fiscal 2011-12, Mahindra 2 Wheelers' accumulated losses stood at Rs 527 crore, based on the data available with Registrar of Companies data. It posted a loss of Rs 238.34 crore in FY12, while total revenues in the same fiscal fell 14.5% toRs 443.07 crore from Rs 518.54 crore in FY11. The company, however, is confident of a long-term potential of the business and will continue to invest in it. The company plans to launch 10 models including refreshes over the next two and half years.
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