M&M is set to rebrandize Kinetic and the 2-wheeler business in India

M&M (Mahindra & Mahindra) is set to revamp its two wheeler business revamping not only to bolster the market share but also to hone the product line up.

Its over a year that M&M, the maker of SUVs and tractors has bought Kinetic Motors and it has taken due diligence to procure the sales and distribution networks and also get clear about the procurement. The company had since then cleared all outstanding dues and also trimmed down the dealer stocks and sales networks (retained about 60% of erstwhile Kinetic Motors’ 300 dealers).

Now into some serious business, the company is now contemplating on taking off the Kinetic brand name from their 2-wheelers; M&M is free to use the brand name for about 25 years, but it is unlikely that the company will continue with the same brand name.

The joint venture (M&M and Kinetic) is all set to roll down its fleet of scooter models falling in the 110cc to 140cc range for the upcoming season of festivals.

M&M is planning to use the acquisition beyond expansion of scooters. The company is also negotiating with global 2-wheeler players for technological as well as financial partnership.

The rejuvenated Mahindra scooters will face heat of competition from global players including Honda and Suzuki. To face the challenge Mahindra Engineering Services with Italian design house (2 wheelers) will pitch in for product enhancement.

The marketing thrust will come from dealerships. Mahindra 2 Wheelers has retained 60% of the 300 dealers it had inherited with Kinetic Motors.

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