M&M to ride on the two wheelers

Despite the speculations over the JV with Renault, M&M is eying on the banks of two wheeler segment. 2010 will be a brisk year for M&M, said its chairman and MD. A firm decision on the entry of two wheelers and the continued JV with Renault (for promoting Logan) will be disclosed before April, he said. The products in the motorcycle segment will be various, he added. Renault, on the otherhand, has sketched its own map for the journey, allied with Nissan and the unit in Chennai will see the making of new products.

This is in response to the state of Logan in the market in last year- 550 units. M&M sees justification on Renault’s part and for its own defense it says the downfall in the Logan sale was due to the much expectations shown on it. Added complication was the higher tax structure for the uneven size of the car. M&M is planning for the US market with the SUV Scorpio, provided it gets a platform for assembling in the US itself. Alternatively, there will be negotiations with the local Navistar for assembling. M&M is alertful about the relaxation in stimulus package by the govt. this package is contradictory to China or the US, where it is large (in India it is a measured package).

Leave a comment

Your email address will not be published.