Mahindra & Mahindra wants to do a Scorpio in scooters. Will it succeed?.
India is the second-largest market for two-wheelers in the world, next only to China. In 2008-09, Indians bought over 7.4 million two-wheelers – motorcycles, scooters, mopeds, step-thrus and electric two-wheelers. This year, the market has so far grown at over 17 per cent. If the trend holds for the rest of the year, 2009-10 could end with two-wheeler sales in excess of 8 million.
The opportunity was simply too good for Mahindra & Mahindra to resist for long. In the last few years, it has evolved from tractors to commercial vehicles and passenger cars. Two-wheelers were the only gap in its portfolio. If plugged, the company could straddle the entire spectrum of automobiles. There were advantages and disadvantages. First the negatives: The market for two-wheelers is as different from utility vehicles as cheese from chalk. And motorcycles comprise over 80 per cent of the market. The competition is cutthroat. It is not easy to gain an inch from street fighters such as Hero Honda, Bajaj Auto and TVS.
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