Mahindra & Mahindra is on
an acquisition spree in both its four-wheeler as well as two-wheeler
businesses. After buying controlling stakes in companies like car maker
Ssangyong of South Korea and Italian vehicle design company Pininfarina, the
company is focussing big time on its two-wheeler business.
The company has now unveiled
plans to refocus on its two wheeler business and will be targeting premium
niche segments. M&M has acquired a controlling stake in Classic Legends
which in turn has acquired BSA Company including all its existing global brand
rights. Classic Legends has also signed an exclusive Brand License agreement
with Jawa, for India and select geographies in Asia. With the acquisition of
Classic Legends, M&M aims to co-create a lifestyle mobility company with
exciting and relevant partners across products and services, and enters into
previously untapped segments using iconic brands like BSA and Jawa, a company
Mahindra & Mahindra, it is
reliably learnt has bought a majority stake in Classic Legends (CLPL), a
company engaged in manufacturing and marketing two-wheelers, for Rs 6 crore. CLPL
is a Mumbai-based, unlisted company, which is yet to start commercial
operations. It was incorporated in June, 2015, according to reports.
M&M made its entry into the two-wheeler segment by acquiring Pune based Kinetic Motors in 2008. Mahindra Two Wheelers Limited will continue with production at its Pithampur plant in Madhya Pradesh where the existing brands of Centuro, Gusto and Mojo will continue to be made, the company noted. The company will continue its exports especially to the Africa and Asian markets. There would be a continued focus on the Mojo both in marketing and product investment.
Mahindra holds a 51pc stake in France based Peugeot Motocycles (through MTWL Europe) where it focuses on growth in its European markets. PMTC will focus on premium new products such as the Metropolis, Django and Speedfight, the Mahindra press note stated.
The two companies had announced on January 20, 2015 that they had completed the necessary formalities for Mahindra Two Wheelers’ 51pc acquisition in PMTC.
PMTC, a key player in urban mobility in Europe for 116 years, is the oldest motorised two-wheeler manufacturer in the world. Peugeot Scooters offers one of the most comprehensive range of scooters and mopeds, from 50cc to 400cc, including the successful three wheeled scooter – Metropolis - in the European market.
BSA, Jawa have a heritage value
Both BSA & Jawa have heritage value and consumer followings in many parts of the world. BSA which has a global appeal will be primarily suited to international markets, and Jawa with its cult following in India is more suited to the domestic market.
Classic Legends would leverage the best global capabilities in design and engineering, along with the expertise available at Mahindra Racing’s technical development centre in Italy, to design and launch products that capture the brand DNA and ethos, of these iconic brands.
Speaking on this development, Dr Pawan Goenka, Executive Director, Mahindra & Mahindra noted, “We are very excited about the new journey that we are embarking upon in the two wheeler space. Our focus on the premium, niche segment through Classic Legends will bring alive some iconic brands like BSA and Jawa, not just in the form of products but as an entire life style”.
Classic Legends Private Limited will introduce iconic classic brands back into the relevant markets. Classic Legends has recently acquired British motorcycle company - BSA Company (BSA) along with all its existing global brand rights. Classic Legends has also signed an exclusive brand license agreement for the iconic Jawa brand, which owing to its cult status in India will mainly be for the domestic market. Products under these brands will be developed to capture the character, DNA and ethos of these brands. The launch of the first few products would happen in around two years, under the respective brands and not under the Mahindra brand.
Hyundai Motor India Ltd. (HMIL) has announced its new campaign with the 6- and 7-Seater SUV – Alcazar, featuring Shah Rukh Khan and the four 4 Indian Women Cricketers -Smriti Mandhana, Jemimah Rodrigu...
Leading two wheeler automobile manufacturer TVS Motor Company has announced the integration of the innovative location technology, what3words into its customer app – TVS Connect. TVS Connect users ca...
Technology-driven consumer finance NBFC Credit Wise Capital launched its AI backed and WhatsApp integrated bot Twin2.