Mahindra BSA Business Plan

Mahindra recently announced that BSA Motorcycles will not fall under the Mahindra brand and that they will be established as independent brand. Stylistically, the motorcycles will hark back to the older models, but will naturally feature new and modern technology.

When asked about the engineering inputs required to develop motorcycles under the BSA brand, the Mahindra spokes person stated that the company would tap into Mahindra Racing, Peugeot, as well as other independent firms. While the brand will be niche, the BSA motorcycles will be at the higher end of the market. BSA will be built overseas at a location still undecided.

The motorcycles, however, are about two years away from market launch.

Mahindra acquired a 51 percent stake in the French motorcycle manufacturer Peugeot early last year. However, there isn’t any clarity on an outside Europe launch. The management stressed that it plans to bring the Peugeot motorcycle brand to countries outside Europe, but are yet to arrive at a sustainable business case. The plan as of now is to expand the brand globally, and strengthen its larger-displacement offerings.

Mahindra has increased its R&D spend by 30 percent, and the cash will go toward updating current products, meeting new emission norms and developing new products.

On the whole, Mahindra looks ready to shift tracks and make its motorcycle business successful. The company was quick to point out that this was just a head-start in a new direction and no fixed time frame has been set for its profitability.

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