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Mobikes, plastic-bodied scooters gaining ground

C.R. Sukumar

HYDERABAD, Sept. 17

THE metal-bodied geared scooters and mopeds are heading towards extinction in the Indian two-wheeler market, the second largest in the world which produces virtually all types of two-wheelers.

Motor cycles and plastic-bodied gearless scooters have gained substantial ground during the last one decade and are going to dominate the market share in the next five years, according to the figures compiled by the Society for Indian Automobile Manufact urers (SIAM) as quoted by LML Ltd in its latest communique to shareholders.

Geared scooters, which accounted for a high of 46.2 per cent of the two-wheeler market during 1990-91, accounted for just 16.6 per cent of the market during last fiscal year. As against 8.35 lakh geared scooters sold in 1990-91 of the total sales of 18.0 6 lakh two-wheelers, the number of geared scooters sold during last fiscal was 6.22 lakh out of the total sales of 37.46 lakh two-wheelers.

Similarly, the market share of mopeds, which constituted 23.6 per cent of the two-wheeler market in 1990-91, has come down to 18.37 per cent during last fiscal. While 4.26 lakh mopeds were sold in 1990-91, the number stood at 6.88 lakhs during last fisca l.

In contrast, the plastic-bodied gearless scooters have been gaining ground. As against 77,000 gearless scooters sold in 1990-91, the number has reached a whopping 2,80,000 scooters as at the end of March 31, 2001. In terms of percentage, while they accou nted for 4.3 per cent of the two-wheeler market in 1990-91, the share reached 7.47 per cent during last fiscal.

Similarly, motor cycles have also been consolidating their market share in the two-wheeler market during the last decade. In 1990-91, 4.68 lakh motor cycles were sold, gaining a market share of 25.9 per cent. By 2000-01, the market share of motor cycles rose to a phenomenal 57.56 per cent, with the number standing at 21.56 lakh motor cycles.

According to the LML management, the rapid decline in the market share of metal-bodied geared scooters was mainly attributable to shift in consumer preference towards motorcycles and gearless scooters, and general state of the economy influencing the urb an working class since metal-bodied geared scooters were purchased and used essentially by these people. Though LML recognised this trend quite early and took steps to enter the growing segments, it could not do so on account of circumstances and events beyond its control.

Motor cycles are expected to dominate the Indian two wheeler market in the next five years, while the growth led by it would be followed by plastic-bodied gearless scooters, metal-bodied geared scooters and mopeds and step-throughs.

LML expects motor cycles to constitute a market share of 58.74 per cent of the two-wheeler market during the current fiscal, followed by mopeds (15.75 per cent), metal-bodied geared scooters (13.2 per cent) and plastic-bodied gearless scooters (12.31 per cent).

By 2005-06, motor cycles were expected to grab a dominant market share of 62.5 per cent, followed by plastic-bodied gearless scooters (16.5 per cent), mopeds (11 per cent) and metal-bodied geared scooters (10 per cent).

The slackened growth in the two-wheeler market during the last two years - 37.77 lakh vehicles in 1999-2000 and 37.46 lakh vehicles in 2000-01 - was attributed to the possible deferment of buying by the replacement category of customers. This, according to LML, was largely on account of the general absence of the ``feel good'' factor in the economy.

However, LML is of the view that this depression might create a significant surge in the demand with the turn-around in the economy in the period thereafter and the industry could witness high growth rates much beyond the levels so far seen.

Considering the rationalisation of excise duty structure in the last Budget, LML believes that the popular engine displacement of two-wheelers (save and except mopeds) would be between 100-175 cc for motor cycles and 100-150 cc for gearless and geared sc ooters.