31Jan/110
Dropping Sales of Mahindra Stallio
Mahindra had high belief from its bread and butter motorcycle, the Stallio but even Aamir Khan can do nothing about it after charging rupees fourteen crore endorsement fees. The 110cc entry level dirt bike saw a dispatch of just 260 vehicles from Mahindra to its 250 dealers, at an average of one unit per dealer. The sales of the Mahindra Stallio have been dropping more rapidly then you can blink. The company dispatched 2664 vehicles in October and sold 1706 vehicles in November.
The reason for this poor show is obvious, recognized competitors. Mahindra Stallio has a base price of Rs. 41,199/- (ex-showroom, Mumbai), but consumers prefer to choose for either the Hero Honda Splendor, Bajaj Discover or Honda CB Twister which cost more. Mahindra CB Twister costs Rs. 5000 more than the Stallio and Honda manages to sell 15000 vehicles a month, commanding a two month wait. However Mahindra says that they are facing capacity crunch due to rough supply and blame the same for the dwindling sales. But to give the Stallio the much needed force, it will soon feature with a four year, 80,000 kms warranty.