We are ready for the ride! The new machines were safer with bigger wheel diameters, more fuel efficient with mileage higher,

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Scooter manufacturers need to get their helmets on for a speedier ride with fabulous sales during FY08

stroke was all it took for Achilles to slay the giant and win the war for Agamemnon’s Greek army in the Hollywood flick Troy. Something similar happened in India too – one shot is all it took for the ‘motorcycle’ machines to wipe off the much-loved chunnu munnu di gaddi, the scooter! The new machines were safer with bigger wheel diameters, more fuel efficient with mileage higher, better looking et al. So, obviously the scooter were dying, right?

Watch the numbers though – with 1.05 million scooters sold during FY08, the segment marked a smashing growth of 11.6%! In shocking contrast is the fact that during the same period, the motorcycle category sales shrunk by a lamentable 11.8%! So do we blame rising interest rates and inflation for the anomaly? Whatever the reason be, the ‘existent’ demand for scooters was clearly visible! So the companies are now taking the strategy to heart – trying to brand scooters afresh and giving consumers high perceived value; and it’s worked well for them as sales figures prove (remember the Nobel-prize winning Prospect Theory?). Honda took the lead in this regard as it sold 618,320 units last year. Even Suzuki is working on its alternate two wheeler strategy with the launch of its Access ungeared scooter (after its motorcycle tactic failed). TVS also launched two special edition scooters on May 1, 2008 & is upbeat about its scooter prospects. “I think gearless scooters are picking up. We have scooty as well as Teenz Electric and we will continue to add to our scooter range. On an annual basis, you can expect at least one new product lauinch from our stable,” asserts Venu Srinivasan, Chairman, TVS.

However there is a ‘wait and watch’ policy doing the rounds. Amidst this insecurity, there is a ray of hope for the scooter and times ahead look positive. And after all the hulabaloo about the motorcycle and the small car, the scooter might just be the next fashion symbol of the Indian middle classes… It; Just; Might. Period!


Karan Mehrishi


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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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