Statements on the road

The ubiquitous scooter that once strode the Indian roads has yielded space to motorbikes, reflecting changes in attitudes, employment and income profiles, says V. S. Sambandan

WITH THE world's second largest two-wheeler market, India is set to witness significant changes in the months ahead as major players in the industry vie with one another to launch an amazing range of new models in all three segments - mopeds and scooterettes, scooters and motorcycles - to retain or even improve their market share in a ruthlessly competitive environment.

The impending shake-out will, more than anything else, be a confirmation of the trend during the Nineties, when Indian roads saw a radical shift in the preferences of two-wheeler riders. Commencing with a predominance of the scooters, the last decade saw a rise in motorcycles and mopeds at the cost of scooters, reflecting the changing lifestyles and aspirations of the different age and income groups.

More than anything else, possession of a vehicle - two-wheeler or four-wheeler - is a statement of sorts. In the era of centralised planning, in which the priorities were different, the ubiquitous scooter strode the Indian roads. For nearly every middle-income family, owning a scooter was a matter of pride. It was the entry- point vehicle for the salariat. But the Eighties changed all that. With the phased opening up of the economy, sleek 100cc motorbikes of different foreign makes came in, ushering a change in the way Indians went to work or entertained themselves. The 100-cc revolution of the mid-1980s was, in many ways, a harbinger of the future.

The earlier gradual shift in preferences gained momentum in the Nineties. In 1993-94, scooters dominated the Indian market with an annual sales of 8.33 lakhs, outstripping motorcycles (4.69 lakhs) and mopeds (4.61 lakhs). By the turn of the century though, the situation changed dramatically with motorcycles taking the dominant position (17.96 lakhs) followed by scooters (12.53 lakhs) and mopeds (7.26 lakhs).

With both scooters and motorcycles in a race to win road-space - both in urban and rural areas - Indian two-wheeler players have planned to offer an impressive range of new and sophisticated vehicles. From mopeds, which are strong in the south, to motorbikes in the niche segment, Indian manufacturers are to introduce a range of products that would further transform the personal transportation scene.

Significant in their presence would be two global players - Piaggio of Italy and Honda of Japan - which would be introducing their scooters directly in India their own brands, without an Indian partner. In the foreign bikes segment, Bajaj would be marketing Kawasaki's Eliminator, by the end of the year-end. An array of the new two-wheelers to enter the Indian market, ranging from the TVS's mopeds to Royal Enfield's niche motorbike, are of varying Indian content.

Producion of two-wheelers in India which was a mere one lakh in 1970-71 rose to 4.4 lakhs in 1980-81, climbed further to 1.8 million by 1990-91 and is set to breach the 4-million mark this year with the production in 1999-2000 at 3.77 million.

Even as this explosion is waiting to happen, a key factor weighing an the industry is the declining share of scooters. "It is a matter of attitude," feels Mr. R. Chandramouli, Vice President, Business Planning, TVS-Suzuki. "Customers attribute more value for a motorbike than a scooter," he says, even as he unveils his company's plans to "restore the pride in scootering" by introducing a new model. If owning a two-wheeler is akin to making a statement, two crucial determinants in a purchase are the buyer's age and employment status. Even a decade ago, the average age at which an Indian purchased a two-wheeler - a family's debut into motorised transport - was in the 30 - 40 segment; and, normally a person who had put in more than a decade's employment. "Since the late Eighties all that has changed," industry sources say.

The present day purchaser of a two-wheeler is normally in his first job, more likely belonging to the 20 - 30 age group and one who wants to make a fashion statement as well. "The spurt in self-employment has also had its role to play in more youngsters taking to motorbikes over scooters," an industry source pointed out, referring to the decline in the scooter segment. Moreover, the easy availability of consumer finance meant that the affordability factor would not weigh significantly in the ultimate purchase decision. The days of the single-income earner for a family have also given way to both partners working, and consequently, requiring a mode of transport. With an overarching demand for personalised transport even within a family, the geared scooters gave way to the non-geared scooterettes and mopeds.

The declining share of scooters is also to be seen in the backdrop of the regional distribution of two-wheeler ownership. The advent of mopeds, scooterettes and 100 cc bikes brought in another subtle change in family transport. With a wide choice of vehicles - both new and second-hand-available and finance easily available, the Indian middle-income group no longer had to depend on a single mode of family transport. "Yet another trend is of families owning a car as well as a bike - though both may be second-hand. The two-wheeler is used for daily transportation to work and other routine chores, while the car is used for family transport, " Mr. Chandramouli said.

The crowded segments - between 50cc and 150cc - apart, the niche players are content with their small but steady market. "We have our market and are happy to contain it," says Mr. Manoj Kumar, Sales Executive for Royal Enfield Motors of the Eicher group. While the company's latest bike, the Lightning 535, is aimed at the small, but steady Bullet-loyalists, it plans to introduce two more variants in a year.

As with attitudes, preference for two-wheelers also varies from region to region. If residents in north India prefer scooters over motorcycles and mopeds, scooters are the least preferred in the South where motorbikes and mopeds are favoured. The presently small eastern market - considered a `virgin market' by the industry - has more motorcycles than scooters and mopeds. On the varying preferences, industry leaders feel that perceptions over what constitutes value for money dictate the final choice.

But, be it the moped in southern India, the scooter in the northern states or the motorcycles in the east, the three segments of the two-wheeler industry are set to undergo a drastic change in the months immediately ahead.

That the Indian customer was more interested in the two-wheelers segment came in the clear from two recent auto exhibitions at Chennai and Coimbatore. At both the shows, two-wheeler manufacturers made their presence felt, offering the customer a glimpse of what awaits them in the future.

The dichotomies of the Indian economy - rural and urban, rich and poor - are all reflected in the two-wheeler market, keeping the major players busy within the domestic market. For, by sheer strength of numbers, nearly four million per year and growing, the Indian two-wheel market which is second only to that of China (about 9 million) holds out the potential for a massive change in the way people travel.

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