Mahindra had high expectation from its bread and butter motorcycle, the Stallio but even Aamir Khan can do nothing about it after charging Rs. 14 crore endorsement fees. The 110cc entry level bike saw a dispatch of just 260 units from Mahindra to its 250 dealers, at an average of one unit per dealer. The sales of the Stallio have been dropping faster then you can blink. The company dispatched 2664 units in October and sold 1706 units in November. The reason for this poor show is obvious, established competitors.
The Stallio has a base price of Rs. 41,199/- (ex-showroom, Mumbai), but customers prefer to opt for either the Hero Honda Splendor, Bajaj Discover or Honda CB Twister which cost more. The CB Twister costs Rs. 5000 more than the Stallio and Honda manages to sell 15000 units a month, commanding a two month wait. However Mahindra says that they are facing capacity crunch due to uneven supply and blame the same for the dwindling sales. But to give the Stallio the much needed push, it will soon feature with a 4 year, 80,000 kms warranty.