Mahindra & Mahindra Ltd has devised a new strategy to relaunch the motorcycle brands BSA and Jawa in India. Back in the 1980s, both these iconic brands had reached a cult status but in the late 1990s, their popularity faced a massive decline.
Classic Legends Pvt Ltd has recently acquired BSA Company, British motorcycle maker and also signed an exclusive brand license agreement with Jawa. Mahindra & Mahindra holds a controlling 60% stake in Classic Legends Pvt Ltd and thus, it now owns the licensing rights to manufacture, sell Jawa and BSA motorcycles.
In 2014-15, Mahindra reported a loss of Rs 528.87 crore and is struggling to make a mark in the two-wheeler business with dominated ventures like HeroMotoCorp, Honda Motorcycle, and Bajaj Auto.
Pawan Goenka, Executive Director at Mahindra and Mahindra, said:
Through this new business plan, M&M aims to become a profitable enterprise. The classic bikes will be developed at Mahindra’s Pithampur plant in Madhya Pradesh where the existing brands of ‘Centuro’, ‘Gusto’ and ‘Mojo’ will also be made.