Date:14/02/2003 URL: http://www.thehindu.com/2003/02/14/stories/2003021402261600.htm

Business

Kinetic eyes European market for mopeds

By Our Staff Reporter

BANGALORE FEB. 13. The dynamics of the Indian mototorcycle market has undergone a drastic change with the auto gear segment outpacing the geared bike segment both in terms of volume sales and growth. The auto gear segment doubled sales from 15,000 to 30,000 units a month with an expected growth rate of 25 per cent.

The geared segment suffered a decline in sales from 1 lakh units to 20,000 units per month. The worst hit seems to be the moped segment where sales have been relegated to specific regions like Maharasthra, Orissa, Rajasthan and Madhya Pradesh.

Now a new market (read Europe and Latin America) might help moped manufacturers rev up sales provided certain norms are implemented in design and pollution standards. Kinetic Engineering has already taken the plunge to pursue the European market aggressively with a new Luna variant in the pipeline.

"The European region has a lot of potential where the Luna is perceived as a fun bike. We have sent the new variants of the Luna for a field test and are awaiting feedback. As of now, Holland will be the launch pad for the revamped Luna,'' Punit Chaudhari, GM, sales and marketing, Kinetic Motors, told The Hindu. The company has already sold over 10,000 Lunas in the U.S.

The success of the Nova has given an additional boost to the Kinetic brand building exercise in Europe. Ten thousand Novas have been exported to Latin America and Europe till date. Incidentally the yet-to-be launched Luna variant has been developed in-house with modifications to the engine and indicators giving it a `European look.'

With some interesting launches like a 250cc cruiser bike and a 165cc GF in the pipeline, Kinetic is gearing up to consolidate its presence in the Indian market.