Mumbai:

Consumer preferences have shifted in favour of motorbikes and though this is partly related to price factors, it is also due to the fact that motorcycles are actually being seen as better vehicles than the heavy and unwieldy geared scooters.

The sales tax rationalisation that took place in the 2001 budget resulted in scooters becoming more expensive than before. In addition the government began to enforce strict Euro-emission norms which forced scooter manufacturers to install catalytic converters in existing vehicles or to go in for four-stroke engines to reduce pollution, thus adding to the costs of scooters. But, fortuitously, motorcycles were already in tandem with these new norms.

Motorcycle, being more suited for commuting than any other vehicle, combines a variety of factors such as comfort, ability to handle bad roads and intrinsic stability. All this makes it extremely suitable for the Indian market.

Also, motorcycles combine sturdiness and speeding capability with a smart and trendy image, which appeals to teenagers and young urban people, while rural consumers like them for their sturdiness and ability to navigate and sustain bad roads.

Here comes gearless But, curiously enough, in the past one year the scooter has not only back, but is surging ahead in sales — and this time it is sleeker, lighter and, most importantly, without gears. Indeed, in a number of B and C cities and small towns across India, women and teenagers are taking to gearless scooters like ducks to water.

It’s easy to see why. Gearless scooters are light and easy to handle, have sufficient compartments to carry goods and go easy on fuel, much like mopeds, with their almost legendary fuel-saving ability.

In fact, in recent times, auto industry experts say there has been a discernible shift of buyers from mopeds to gearless scooters as the latter cost just a couple of thousand more and come with sturdier bodies and better looks.

Around two years ago when sales of geared scooters started falling, a number of companies led by Honda Motor and Scooters India, which did not have a motorbike model in the market, launched gearless scooters in an effort to grow this segment.

In 2001 the gearless scooters market grew by 8 per cent while in 2002 it grew by an estimated 29 per cent. Some experts are of the opinion that soon these will outpace the growth of motorcycles.

The gearless scooters segment (75-125 cc) comprises four major players: Honda with the Activa and the Dio; Kinetic with the Zoom and the Nova; Bajaj with the Sunny and the Saffire; and TVS with the Scooty.

The 102cc Honda Activa is now the leader of the gearless scooters market, selling over 13,000 units per month. Honda Motor’s other brand, the Honda Dio, a 102-CC sporty scooter with four-stroke engine and automatic transmission, also sells well though it is not quite in the same league.

The Honda Activa’s fast growth has encouraged other players to come out with new offerings to increase the market share. One example is Kinetic Engineering, with sister company Kinetic Motor, who are the pioneers in the gearless scooters segment and the largest manufacturer of gearless scooters in India starting from humble beginnings with the Luna moped in 1970.

Kinetic energy In the past one year the Kinetic group has launched a number of automatic scooter models in the domestic market, which has helped it to get customers who might have otherwise opted for motorcycles. The company is focusing on designing scooter models specifically suited for Indian conditions.

For instance, its 115-cc, four-stroke Kinetic Nova is designed for Indian conditions in its styling and utility. Its success has encouraged the company launch new variants with special features. The company has also come out with a two-year warranty for its Nova, launched last year, as an added attraction to foster customer retention.

In January 2003 the Kinetic group launched the premium Nova DLX priced at Rs 35,576 ex-showroom price Delhi, and announced that it would launch another gearless scooter by the end of the year.

Also recently, the Nova DLX launched the Mileage Expert, an electronic device, which keeps the rider informed of fuel efficiency during the ride and the company claims it improves efficiency by 10 per cent.

The company is also planning to ramp up production of two-wheelers to 2 lakh units from 50,000 units every year with an investment of around Rs 50 crore, says Kinetic group chairman Arun Firodia. The augmented production is to increase the sales of the Kinetic Nova to 1 lakh units against the current 40,000.

Kinetic is also planning to export the Nova to the US and Europe and is working on ‘homologation’ (engine testing) of the Nova in these countries, and a certificate is awaited. The Nova is currently being exported to Latin America and South Asia.

Southern spirit The South-based TVS Motor is another major player in the gearless scooters market. It is also aspiring to become a leadership position in the gearless scoters segment, inspired by the success of the Honda Activa.

TVS is planning a new Scooty with a 100-plus cc engine and as part of the flexible and low-cost product development strategy, the new Scooty is expected to share the engine with the TVS Victor, which comes with a 110cc four-stroke engine. Company sources say the Victor engine can be easily fitted into the new Scooty with minor modifications.

Currently, the Scooty is available in the sub-75cc scooterette segment where it competes against Bajaj Auto’s Spirit and Sunny. While the lower-priced variant comes with a 60cc engine, the newly launched Scooty Pep has 75cc four-stroke engine.

TVS is also a major player in the mopeds segment with its TVS Champ and hopes to replicate its success with gearless scooters as well. The new Scooty launch is part of TVS’ larger plan to beef up its product portfolio.

In all, TVS plans to roll out six new models of scooters and motorcycles next fiscal with a total investment of Rs 200 crore in 2003-04. The company has set aside a total investment of Rs 600 crore during the next three years to expand its product range in the domestic market.

The name is Honda Finally the market leader Honda, not to be left behind, is planning to double its production capacity of gearless scooters in Indian by the next fiscal and plans to launch a new 150cc four-stroke engine gearless scooter by the yearend.

Honda plans to sell around 1.55 lakh units of the new scooter in this fiscal year. The company also plans to enter the bikes market by launching its own model.

All in all it promises to be a bonanza for consumers.