Mahindra 2 Wheeler set for reentry into motorcycle segment

13 Dec 2011 Evaluate

After its production of motorcycles was stopped earlier this year due to gearbox problems, Mahindra 2 Wheelers, a part of the $ 14.4-billion Mahindra Group, is gearing up to re-enter the segment with its commuter bike 110cc Stallio.  Modifications have already been made. The launch of Stallio will hopefully be by the end of this financial year, while the 300-cc Mojo is expected to hit the Indian roads next year. The company on Monday launched its new gearless scooter – Duro DZ – with additional features like dual curve digital ignition system, rear break lock lever, an under-seat storage capacity of 20 litres and a built-in front storage, positioning it against Suzuki’s Access in the 125-cc category. Duro DZ is initially being launched in Hyderabad (Rs 44,640, ex-showroom) and Kerala (Rs 44,908, ex-showroom) markets, with plans to have a pan-India roll out in the next one-and-a-half months.

Claiming that Duro DZ returns 53 kilometre (test figure) per litre fuel economy in Indian driving cycle, as against Suzuki Access’ 47 kilometre, The scooters market in India was estimated to be at around 200,000 units a month, of which the 125-cc category accounted for around 20 per cent. While the company commands a share of around 50 per cent of the 125-cc market, it stands quite low at 7-8 per cent in the overall scooters market. This (Duro DZ) will make it get to a much bigger market share, probably to 10 per cent by FY13. Mahindra 2 Wheelers, which has its manufacturing plant at Pithampur near Indore, currently has an installed capacity of 1 million units a year. The company was expected to achieve full-utilisation of the capacity once its motorcycle models were rolled out.

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