Mahindra & Mahindra the USD 6.5 billion conglomerates is strengthening its rural presence by launching two scooters aimed at the market there and hopes to capitalize on its existing brand value in these areas. The company said that scooters are priced lower than competition and deliver more power and that it expects to corner market share though these products establish its brand before launching its motorcycle range.
Mr Anand Mahindra vice CMD of Mahindra said that "The Mahindra brand is very strong in the rural market due to our tractors....there was a need to further capitalize on this. We are sure our two-wheelers will get the benefit.”
Mr Anoop Mathur president two wheelers of Mahindra & Mahindra said that "The two wheeler market itself is growing at high double digit rates and we certainly foresee that it will grow at 10% to 12% per annum over a period of time. Our focus is to expand the two wheeler market and create a differentiated position. We have carried out a massive market research exercise, which has given us the idea of what should be rolled out. We cannot reveal what products those would be but we have a very clear blueprint.”
To strengthen its reach in the rural and semi rural market, Mahindra & Mahindra is looking to tap into its standalone commercial vehicle showroom outlets where it can also display its two wheelers. A senior executive said owners of commercial vehicle showrooms will be appointed for setting up two-wheeler showrooms too, while having an option to display these at their existing outlets.
Market research firm Ernst and Young in its recent report on the rural sector said that Hero Honda generates 40% of its sales from rural markets. Two wheeler penetration levels of less than 10% in rural areas is a huge opportunity. The corresponding figure is 23% in urban areas.
(Sourced from Business Standards)
Monday, September 21, 2009
Mahindra and Mahindra hopes on rural ride in 2-wheeler segment
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