Multiple auto businesses a secure bet, says Mahindra
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Multiple auto businesses a secure bet, says Mahindra
 

Mahindra & Mahindra's (M&M) growing presence across the entire product spectrum of the automobile industry does not make the company defocussed but rather more stronger and secure, feels Anand Mahindra, MD of the company that is expanding into the two-wheeler and heavy commercial vehicle segments.

"It is wrong to presume that we have more than what we can chew. Mahindra's automobile business is in good shape and our presence across automobile segments - two-wheelers, three-wheelers, commercial vehicles, passenger vehicles, tractors and cars - in no way makes us weak. Rather, this makes us more secure and less vulnerable," Mahindra told TOI.

M&M, primarily a big player in the utility vehicle space, has been gradually upping its stakes in the auto business independently and through JVs. The company entered the two-wheeler space by buying the assets of Kinetic Motors. It also signed a JV with Navistar of US to make a strong pitch in the heavy commercial vehicle segment. The company scooped up Punjab Tractors and made some acquisitions in China. According to Mahindra, presence across product spectrum is not worrying as the company manages each segment as a different vertical with utmost focus.

"We have seen to it that managements running each of these businesses are autonomous. The marketing teams are alert to the customer needs of their respective segments." He said even as each segment had autonomous management structure, the company ensured that synergies could be struck between the various businesses despite their diversities. "They may be different on the front, but behind the scenes, they have huge synergies. These are in the areas of procurement, R&D and spare parts."

Mahindra is confident that the company's two-wheeler products would be accepted by the market despite the dominance of Hero Honda and Bajaj. "We are not starting from a clean sheet." The company has so far launched scooters and Mahindra said they had plans to sell bikes too, which account for the big volumes. "Also, we should not forget that the Mahindra brand is well accepted in the market. It always helps in terms of branding when you have a two-wheeler product coming from the stable of an established four-wheeler maker."
Posted On : 08 Jan 10
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Multiple auto businesses a secure bet, says Mahindra
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