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Scooter) Products Market Analysis and performance Evaluation of Two Wheeler (Scooter) Products Dr. H.C. Purohit * Abstract India s two-wheeler industry is the second largest in the world. Over the past decade, while the industry has recorded an average growth of 8% the Scooter Motorcycle and Moped-business has registered a growth rate of 7% and 12% respectively, over the same period of time. Two-wheelers were one of the best performing industry segments of the economy in 2002-03. This growth was fuelled by motorcycles; while sales in all other product categories declined, motorcycles grew at a robust 31% last year represented 74%) of all two-wheeler sales against just 27%> in 1996-97. The Scooter market entered a new phase of evaluation, with good looking models such as LML Select hitting the road, menfolk got over the feeling that manhood has little to do with kick starting two-wheelers or using gears and slowly started adopting the gearless, button start Kinetic Honda, TVS and Honda scooters for sheer convenience. Once, Bajaj Auto was the only 'complete 'two wheeler manufacturer, with models in all defined categories. Now TVS Suzki, Honda, Kinetic Honda has an equally diverse portfolio (models). And LML is headed that way too, with mo-bikes on its launch pad. The competition within the industry is changing in qualitative terms; LML and TVS Suzki have become two wheeler companies in the real sense. Bajaj has another player to compete within scooters. The new challenges for Hero Honda too. The fight is on and the four brands Bajaj, LML, TVS, Honda and Kinetic Honda one vying for a larger chunk of the scooter market offering new features with each upcoming model. The present study is an attempt to evaluate the performance of the different scooters available in the market, preference of scooter users about these brands and models. And also identify the necessary changes/modifications in the product to reveal whether the targeted groups & the user groups actually correspond as presumed. A cknowledgements: The author would like to acknowledge UGC, New Delhi, for granting fund to conduct the study of two-wheeler (scooter) industry, under the provision of a Major Research Project, with out which this study could not have been completed. Introduction global supply chain. Two-wheelers were one of the best performing industry segments of the economy in The two-wheeler sector has evolved in tandem with the local automobile industry. The customer had *Dr. H.C. Purohit one limited model in two-wheeler sector. Now international two-wheeler manufacturers are available. Faculty Member The auto components manufacturers were quick to Department of Business Economics adapt themselves to the new environment after the VBS Purvanchal University, Jaunpur (UP) opening of the economy. Indian companies are now E-mail: [email protected] globally competitive; largest Original Equipment Manufacturers (OEMs) have tied up with them for their E-mail: [email protected] Review of Professional Management, Volume 6, Issue 2 (July-December-2008) 1 2002-03. This growth was fuelled by motorcycles; while Motor Co. continued its dismal performance with a sales in all other product categories declined, massive 32.64% decline at 58,594 units against 86,990 motorcycles grew at a robust 31% last year units in the month of October 2006. SIAM sources represented 74% of all two-wheeler sales against just that total two-wheeler sales in October was also down 27% in 1996-97. However, on the other hand, hit hard by 3.73% as compared with the units sold in the month by rising interest rates, sales growth specially that of of October 2007. motorcycles remained negative. According to figures released by the society of Indian Automobile This is despite the Scooters segment posting Manufacturers (SIAM), Motorcycle sales continued to a healthy 16.61% growth at 98,752 units against be in the red posting a decline of 6.74% at 6,57,874 84,680 units in the year 2007. This growth may be units against 7,05,467 units in the month of October due to stylist and elegant models of the scooters and 20O6.Market leader Hero Honda Motor (HHML) showed up-graded technology to save the fuel consumption a marginal increase in sales during October 2007. Rival make the ride comfort, a painless and enjoyable Bajaj Auto registered a drop of 8.33% at 2, 05,004 journey. The annual sales trend of two-wheeler units in October 2006 against 2,23,642 units in October products is as follows: 2006. India's third largest two-wheeler maker TVS Annual Sales (in 'OOOs) Year Mopeds Motorcycles Scooters Ungeard scooters 1998-1999 624 1178 1116 238 1999-2000 611 1613 986 372 2000-2001 568 2032 605 397 2001-2002 421 2869 534 409 2002-2003 362 3757 338 527 (Source: The HINDU Survey of Indian Industry, 2004). An overview of Indian two-wheeler Industry latest motorcycles in India which are of world class quality The Bajaj Kawasaki eliminator has emerged 1. Bajaj Auto Ltd. straight out of the drawing board of Kawasaki heavy industries. The core brand values of Bajaj Auto limited Wheeler manufacturing company in India includes Learning, Innovation, Perfection, Speed and apart from producing two wheelers they also Transparency. Bajaj Auto has three manufacturing units manufacture three wheelers. The company had in the country at Akurdi, Waluj and Chakan in started way back in 1945. Initially it used to import Maharashtra, Western India, which produced the two wheelers from outside, but from 1959 it started 1,814,799 vehicles in 2004-05. The sales are backed manufacturing of two wheelers in the country. By the by a network of after sales service and maintenance year 1970 Bajaj Auto had rolled out their 100,000th work shops all over the country. vehicle. Bajaj scooters and motorcycles have become an integral part of the Indian milieu and over the years Bajaj Auto has products which cater to every have come to represent the aspirations of modern segment of the Indian two wheeler market Bajaj CT India. Bajaj Auto also has a technical tie up with 100 Dlx offers a great value for money at the entry Kawasaki heavy industries of Japan to produce the level. Similarly Bajaj Discover 125 offers the consumer Review of Professional Management, Volume 6, Issue 2 (July-December-2008) 2 a great performance without making a big hole in the 400 dealers and authorized service centers. Kinetic pocket. Motor is ISO 9001 certified from DNV for all models and activities. USA, Canada, Latin America, Europe, Bajaj Auto also has a marked presence in the Africa, Middle East and South Asia are the main export premium segment with models like the Bajaj Pulsar markets for the Kinetic Motor automobiles. creating a ripple on the Indian roads. The general trend of the two wheeler industry has not left Bajaj Kinetic has launched India's first motoscooter Auto unscathed. Scooters which were once the main in the form of Kinetic Blaze. Kinetic Blaze is a 165 cc source of revenue for the company have given way to scooter which seeks to revolutionize the diminishing motorcycles. scooter market in the country. The product is a first of the seven series of vehicles which Kinetic want to In the late 1990s, realizing that it should acquire from the Italian two wheeler giant Italjet Spa. revamp its product line to meet the quality expectations However the beginning of the company has been much of the customers, Bajaj attempted to change its focus more modest. The company has revolutionized the from a standardized product to a wide range of models concept of personalized transportation in India with and so variants were designed to appeal to a broad the launch of Kinetic xLuna' moped in 1972 thus cross-section of the market. Besides introducing new ushering in the era of mopeds into the country. models, Bajaj realized the need to build a presence in the fast growing motorcycle market. Bajaj also focused Kinetic has also brought to the fore superior on creating a marketing culture, on quality, improving technology to the scooters by introducing things like the supply chain, revamping manufacturing practices auto choke, auto fuel cork and TLAD suspension. It and concentrating on overseas market to globalize, in also brought in gearless scooters in the country. Kinetic an industry where some of the leading companies are Honda was quite a rage among women who preferred global players. the convenience and easy maneuverability of a gearless scooter than a geared one. 2-LML India Kinetic has three manufacturing facilities LML is one of the leading scooter located at Goregaon Bhima, Ahmednagar and manufacturers in the country, with a 30% market share Pithampur to produce more than 4 lakh vehicles per in volume terms with its popular scooter brand year. Kinetic motor began in 1984 with collaboration "Supremo". Financially, LML's turnover has grown from with Honda motor of Japan to sell advanced scooters Rs.209.05 crores in 92-93 Rs.832.71 crores in Sept in India. Kinetic motor has also positioned itself as a '98. It plans to facilitate authorized dealers with a WAN leading exporter of two wheelers to destinations like (wide area network) and sell spare parts through the USA, Canada, Latin America, Europe, West Asia and Net. It is also working towards setting up five training South Asia. The Kinetic is the original revolutionary schools (one each in Mumbai, Kanpur, Bangalore, scooter with many astonishing credits to its name: Calcutta and Noida), to train mechanics and service personnel. Beginning with 120 people in the first First gearless two wheeler in India with quarter of 1999, it hopes to build up a base of 20,000 variomatic transmission which eliminated the hassle trained mechanics over time.
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