Mahindra Acquires BSA for Revival of Motor Cycle Business

The revival of the Iconic Motorcycle brand BSA is expected soon by the Indian auto major Mahindra & Mahindra. The Mahindra & Mahindra has made their minds in launching the classic British motorcycle brand—- The BSA after the launch of Peugeot motorcycles (PMTC), and legendary design house “Pininfarina” last year.

History Of Mahindra & Mahindra

Mahindra & Mahindra has been one of the most major Indian auto companies that have definitely made an acquisition through Classic Legends (CLPL), one of its subsidiaries, in which this company has a stake of approximately 60 percent. CLPL has brought all the 1.2 lakh shares of the motorcycle business of the British firm, and that too, at the rate of GBP of 28.33. The total cost of the British firm has a GBP of 34,00,000 ( an approximate value of 28 crore). The Mahindra & Mahindra has been planning to complete all t he acquisition by November 5, 2016, after which only, it will be able to use the license of the BSA brand for all the various purposes, such as that of marketing, distribution, as well as selling products around each and every corner of the globe.

Bad Financial Path for Mahindra Two Wheelers 

It is obviously all well known to us about the various losses undergone by the Mahindra two wheelers. Even after the launch of several various motorcycles and scooters, which had been jointly aided by the robust marketing and distribution program strategy, the company has not been able to clock the overall target volumes. The company had also positioned the entry- level motorcycle Centuro, which at the initial level saw customer tracking, but even that attempt failed because of the increased competition from Bajaj Auto, Hero Motocorp and Honda. Again, to turn around its two-wheeler business, the Mahindra & Mahindra has decided to go on a revamp, which further includes cutting costs, reducing the manpower as well as to shift its focus on higher margin premium scooters.

What Do We Know About BSA?

BSA, which serves as an acronym for The Birmingham Small Arms Company limited, has been present in the business of motorcycles since the year 1910. The first offering it made to this business was a 3½ hp motorcycle. It has been able to achieve several accomplishments, such as winning a race over to become the largest motorcycle manufacturer in the world, occupying a firm seat to enunciate its presence in the motorcycle racing, and several other milestones has been achieved by this company as well. It was only in the 1960s that this British motorcycle started losing out its strength due to the launch of various other reliable and advanced Japanese machines. In order to gain the momentum again, BSA merged with Triumph. This was done to make sure that the best use of qualities of both the companies was taken into consideration. It turned out that their competitors, i.e., the Japanese products were still better.

Another attempt was also made to capture the market, which was again a merger, but this time, with the Norton Villiers Triumph Group. It seemed that their fortune was not with them, due to which, even after several efforts, things did not work out properly, which resulted in ceased production. Again after 4 years, the company restarted producing hand built 400cc Gold SR. It was after the year 2003 that it was made explicit that the bikes are not in any demand as the company expected.

Well till now, all the possible efforts made by the Mahindra & Mahindra has not shown the expected results, but the company has seriously started counting on this current step that it  undertook. The company seriously hopes that it will be able to make a sudden comeback in the world of motorcycles as the most strong contender, with the help of BSA.