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Mahindra War Room 2015

2Wheelers - Peugeot Caselet

MAHINDRA 2WHEELERS SECTOR:

PEUGEOT INDIA ENTRY STRATEGY BUSINESS CASELET

The Mahindra Group entered into 2 Wheelers in 2008, with the acquisition of Kinetic

Motors. In the last 7 years, Mahindra 2Wheelers Limited (MTWL) has innovated and

differentiated in both the motorcycle and the scooter segments, with Mahindra Centuro

and Mahindra Gusto, which have won multiple awards. MTWL has expanded its global

reach too, and is currently exporting to 17 countries in 3 continents.

BUSINESS BACKGROUND

The global market for Two wheelers has witnessed a steady growth in the past few

years, and is expected to grow at a higher pace over the next 5 years. In FY14, the

global market size was around 58 million units, with nearly 75% of it coming from China,

India, ASEAN and Brazil. The Industry is also witnessing acquisition or partnership

activities like Bajaj-KTM, Kinetic Group-MV Agusta, VW-Ducati, to name a few. This

allows Indian brands to aspire for new markets and product segments globally.

India is the largest two wheeler market in the world, registering a cumulative annual

growth rate of 12% in the last 5 years. This momentum is expected to continue for the

next few years, though the rate may drop to 8-9%. The growth is expected to come from

both rural and urban markets, driven by both scooters and motorcycles. With the

increasing presence of global players, the industry is becoming intensely competitive,

with a lot of options available for the customer.

LIVE CHALLENGE: PEUGEOT INDIA ENTRY STRATEGY

Peugeot is a 200 year old group and is a well-recognized brand in urban mobility in

Europe for the last 116 years, being the oldest motorized two-wheeler manufacturer in

the world. Peugeot Motocylces (PMTC) is the name of the company which sells its

range of two wheelers under the brand name of Peugeot Scooters in more than 40

countries.

Peugeot Scooters offers a comprehensive range of scooters and...