Mahindra Two Wheelers to cut down 700 Jobs. By downsizing and cutting jobs Mahindra is looking at cost optimisation
Mahindra & Mahindra is soon to revamp its two wheeler business under which they will cut down their manpower to nearly 400 workers from 1100 serving in the company currently. Along with this, the company is looking forward towards focussing on higher margin scooters in the premium segment along with lifestyle motorcycles.
By the year 2017, we should expect around 6 new models from Mahindra Two Wheelers. As per the reports, Mahindra Two Wheelers is looking at a strategy where they will make a balanced offer of value added products and premium products which will include scooters from Peugeot.
Also Read: Upcoming Aprilia SR150 Premium Scooter Spotted in Pune
The reports also state that this strategy is being taken on with an aim of looking towards higher volumes as well as better margins where the company focuses on cost optimisation. There is an assumption that the material cost optimisation project will be taken up by AT Kearney consultancy firm as they have been working with Mahindra for over a year and the association has been quite beneficial till now.
Apparently Mahindra is in talks with European brands like Norton and BSA that are non-operational currently but have a very rich heritage. The company is looking at acquiring the branding rights for these European giants. Though there aren’t any official confirmations regarding the same.
Also Read: Mahindra Two Wheelers Concludes First Jungle Trail for the Mojo Riders
Mahindra Two Wheelers is looking at moving beyond the regular traditional scooter and motorcycles in India. In fact, with the 300cc Mojo, the company is trying to capture the growing segment.
During a discussion with a leading financial daily, the CEO of Mahindra Two Wheeler Ltd, Vinoy Sahay had said that the 300cc lifestyle motorcycle, Mojo has received a good acceptance and is the only Indian brand in this segment apart from the market leading Royal Enfield. He further added that they are doing about 200 – 250 units a month which they plan to take to 500 units within the coming 6 months or so.