M&M to enter into bike segment this year

Auto major Mahindra & Mahindra Friday said it will foray into the motorcycle segment with a wide range of products this year, even as it will take a final call for the continuation of its joint venture with French carmaker Renault in the next 45 days.

"We have a plan to get into the motorcycle segment. This will happen this year," Mahindra & Mahindra vice-chairman and MD Anand Mahindra told reporters on the sidelines of an event organized by the automotive body Siam here.

"We will be a full-range player. We simply will not come out with a motorcycle product," he added.

When asked about the status of its 'one-product' joint venture with Renault, Mahindra said: "We will come out with a statement within 30-45 days (on) how and Mahindra Logan venture will continue in the future, what the roadmap. "

M & M has a joint venture with Renault - Mahindra Renault Pvt Ltd, which manufactures the only product Logan in India.

Renault has recently announced to set up its own distribution network to sell products that will be produced from the upcoming Chennai facility, constructed with Japanese partner Nissan.

In the last year, the sales of Logan fallen dramatically, and JV currently sells around 550 units per month.

M & M has no objections to Renault launches their products alone, Mahindra said, adding that "the only thing that went wrong with Logan created an expectation which was too high for the vehicle."

He also said higher tax structure for larger car was also one of the reasons for lack of Logan.

"The tariff structure has changed here, who spoke against the car out certain size. This drawback was frankly too much to handle without changing the size of the car," he added.

On its foray into the U.S. market, Mahindra said it plans to launch its sports utility vehicle Scorpio in the track.

"There is no decision to assemble Scorpio in the U.S.. If the market makes our product well, we'll look for a session of the United States ... to use our partner Navistar's facility is also open," Mahindra said.

Talk about expectations of future EU budget, he said that the government should be very careful for the withdrawal of the stimulus packages.

"The stimulus package in India was not a very overwhelming one, as in China or the U.S.. It is a very very measured package," he added.