Mahindra Two Wheeler to downsize workforce by 700
In a bid to mitigate the losses and turn around its operations, Mahindra Two Wheelers Ltd. (MTWL) is working on a comprehensive cost optimization project. The company is reported to cut 700 jobs to downsize its workforce from 1,100 to 400.
The two wheeler division of the conglomerate has been working with consultancy firm AT Kearney to achieve material cost optimization.
The major strategy rejig also calls for new products in unconventional and niche segments. It’s extremely challenging for MTWL to lock horns with established rivals like Honda and Hero Motocorp in the traditional scooter and motorcycle segments.
The company is expected to launch 6-7 new products in 2017 including premium scooters from the Peugeot stable. It was also reported that Mahindra is in talks with several defunct but heritage rich European motorcycle marques like Norton and BSA to acquire the branding rights.
While traditional products like the Centuro 110 cc commuter and Gusto automatic scooter failed to bring the much-needed volumes, the company’s flagship Mojo 300 cc tourer has been doing reasonably well in the lifestyle segment. The tourer is currently available in 15 cities and is clocking around 250 units monthly. The company is hoping to double this volume in the next six months by extending the availability.
Also read – Mahindra to launch Peugeot scooters next year
MTWL started off with an objective of being a mass market player but has now corrected its course to cater to the niche segments of the vast Indian two wheeler segment. For such a strategy to work out, it needs to have a lean and agile workforce.