Mahindra to bring back Jawa motorcycles
NewDelhi,Oct26:In a series of acquisitions, homegrown automotive major, Mahindra & Mahindra has signed a licensing deal with iconic Jawa Motorcycles of Europe.
Mahindra’s subsidiary, Classic Legends Private Limited or CLPL signed the licensing the aforementioned licensing agreement, which would give the company the rights to market and sell Jawa branded motorcycles in two-wheeler markets of East Asia and India.
Mahindra also recently announced buying out complete stake in British iconic moniker, BSA and with both of these recent acquisitions, the company aims at targeting the niche motorcycling segments with its products. While with BSA, it would target established markets of America, Japan, Singapore, etc., the company aims to develop and produce Jawa branded motorcycles in India and sell them in the country and other Asian markets.
Mahindra had acquired BSA for Rs. 28 crore and it bought all the 1.2 lac shares of the British company and purchased them outright at a price value of 28.33 Pounds per share.
With this deal, Mahindra’s CLPL now gets hold of rights and licenses to the BSAbrand and it can utilize the same to market its motorcycles across the globe. BSAalso has its presence in countries like Canada, Mexico, U.S.A, Singapore, Japan and Malaysia. This can benefit Mahindra to enter these markets and leverage the brand BSA to establish itself in such highly saturated markets.
Mahindra has also announced that new products will be developed under the two brands and will be designed and created, all being in line with the legendary ethos of either of the iconic motorcycle brands, which were much loved in their heydays.
The company is targeting to bring fresh products from both the brands within the next two years. This now creates good opportunity for the company to get away from the mass segments and venture into niche categories a create good space for itself.