Mahindra plans to enter motor-cycle biz

Mahindra amp; Mahindra is firming up plans to enter the motor-cycle market by end-this year.

Having sold a record 1 lakh scooters in a span of just 10 months,Mahindra amp; Mahindra is now firming up plans to enter the domestic motor-cycle market by end-this year,a top company official said.

8220;We have achieved a milestone by selling one lakh scooters in just 10 months as against a set target of 18 months. Our plan now is to enter the motor-cycle market by end-this year,8221; Mahindra two-Wheelers8217; President Anoop Mathur said.

8220;We are working on a unique product that will be assembled in the same plant where our scooters are manufactured,8221; he said.

The company is designing the motor-cycle at its Italy-based Engines Engineering,which was acquired by the Mahindra group in 2008. Presently,the company8217;s Pithampur facility where it makes its scooters has a capacity to make five to six lakh scooters annually.

Buoyed by the robust market response for its scooters,Mamp;M now aims to double its scooter sales from one lakh to two lakh by December 2010.

8220;What we have achieved in 10 months,we would like to achieve in the next five months. We plan to sell another one lakh scooters in the next five months,8221; he said.

The company clocked a 329 per cent jump in its two-wheeler sales in July at 12,033 as against 2,808 units in the year-ago period.

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8220;Our July sales has given us the confidence that we can achieve this other milestone in the next five months,8221; the Mamp;M official said.

The Mahindra group had picked up an 11 per cent stake in Kinetic Motor two years ago to gain an entry into the two-wheeler segment. The group had also acquired Engines Engineering of Italy,a design house for two-wheelers,in 2008.

Innovation will hold the key going forward,Mathur said,adding 8220;innovations will help us become a significant player in the global market.8221;

8220;We aim to establish the Mahindra two-wheeler brand in the international market in the next few years,8221; he said.

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The company sees more potential in rural markets in India and plans to significantly increase its dealership network in Tier II and III destinations.

8220;Presently,we have 350 dealers pan-India and plan to add 50 more this fiscal,8221; he said.

Mamp;M,which is currently exporting two-wheelers to Bangladesh,Nepal and Sri Lanka,is eyeing more global markets.

8220;We will be exporting our two-wheelers to Cambodia,South Africa and a few other countries in the coming days. Our dream is to become a global player,8221; he said.