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Mahindra Two Wheeler to downsize workforce by 700

Mahindra Mojo New Colour Auto Expo 2016

The company will focus on niche and premium segments rather than going head on with industry giants in the mass market segments.

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.

Mahindra Mojo Adventure Concept

The company is reported to be gearing up to launch 6-7 products in 2017 and most of them will cater to lifestyle segments.

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.

Peugeot Scooters Satelis 125

The company will enter the premium scooter segment with Peugeot products in the coming months.

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.

Mahindra Mojo Adventure, Scrambler concepts – Photos

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Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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