Anand Mahindra admits that entering Two Wheelers business was a failure as the company could not find success in the entry-level motorcycle segment.
But now, Classic Legends Private Limited, a subsidiary of the Mahindra Group, is experimenting with another category of two wheeler segment by reviving the classic Jawa motorcycle brand in India. According to Anand Mahindra, the learning from the company's performance in the commuter bike segment was a "product failure" which led to entry into the premium two-wheeler segment, where he said the group has been fairly successful. But more importantly, the Mahindra Group-owned Classic Legends Private Limited has been able to inject fresh momentum to the premium motorcycle segment, by reviving the Jawa motorcycle brand, originally a motorcycle brand from the Czech Republic. The new Jawa motorcycles, with three models on offer, are seen as direct competitors to Royal Enfield which has an average monthly sales volume of between 65,000-70,000 motorcycles.
"We knew our dream well and we had the right things, but how to win is where we went wrong. We should have never gone to the commuter bike side," Anand Mahindra has been quoted as saying at an event organised by British airline Virgin Atlantic on looking at "business as an adventure".
The Mahindra Group had entered the two-wheeler segment after buying out Kinetic Motor Company in 2008. Mahindra Two Wheelers had a few decent products in the commuter motorcycle portfolio, like the Mahindra Centuro, Mahindra Pantero and Mahindra Stallio. But the company failed to make a mark in the entry-level two-wheeler segment largely dominated by Hero MotoCorp, Honda Motorcycle and Scooter India, as well as Bajaj Auto.
In the 2018-19 fiscal year, Mahindra Two Wheelers sold just over 4,000 units, a decline of 73 percent from a year ago.