M&M to enter into bike segment this year

Mahindra-&-Mahindra-LogoMahindra & Mahindra, Indian major auto player, is planning to foray into the motorcycle segment with its wide range of products.

The company will launch some of its new models this year. Mahindra & Mahindra will introduce various models with different features and price range offering different options for Indian consumers.

Mahindra & Mahindra also has a joint venture with French car maker Renault under the name of "Mahindra Renault Pvt. Ltd" which manufactures the only product Logan in India. The company will declare its decision regarding the continuation of this joint venture with Renault within next 45 days as the Renault is planning to set up its own distribution network in India to sell its products. The plant location for the manufacturing plant is Chennai. Renault's Japanese partner Nissan is constructing that plant. M&M also does not have any objection on Renault launching its products alone.

Over the last one year, sales of Logan have fallen drastically. The JV currently sells only about 550 units per month. One reason would be Logan was creating an expectation which was too high for the vehicle. Another reason may be higher tax structure for bigger car that made Logan a failure in India. The tariff structure changed here, which militated against the car beyond certain size. That disadvantage was frankly too much to cope with without changing the size of the car.

Mahindra & Mahindra also foray into the US market with the launch of its sports utility vehicle Scorpio there. However, it is not yet clear whether company will assemble Scorpio in US. It depends upon the acceptance of the products in US market. If the market receives the product well, Mahindra & Mahindra can use its partner Navistar's facility in US to manufacture the Scorpio.