India shuns scooters as cars take over
Decline of the Traditional Scooter
Scooters were once the most popular two-wheeler on Indian roads and captured the imagination of a generation. Entire families could be seen riding together on models like the iconic Bajaj scooter. These vehicles were so much in demand that waiting lists existed and many were sold at high premiums on the secondary market.
Inspired by the Italian Vespa the Bajaj scooter first launched in 1972 and became a symbol of Indian mobility. However with rapid economic growth many consumers have moved away from scooters. They now prefer modern motorcycles or entry-level cars as their incomes rise.
Bajaj Phases Out Scooter Production
Bajaj one of India's largest two-wheeler manufacturers has decided to stop scooter production after March 2010. The company will focus instead on motorcycles where it aims to capture a 35 percent market share. Last year around 7 million units of motorcycles and scooters were sold in India but scooters now form only a small part of that total.
Production of Bajaj scooters has already dropped dramatically to just 1,000 units per month. Although scooter manufacturing will end the vehicles will continue to be seen on Indian roads for years as many remain in daily use especially among those who value their low cost and ease of maintenance.
Practical Appeal of Scooters
Many users like mechanic Sartaj Ali in South Delhi still rely heavily on their scooters for work. He uses his 10-year-old second-hand Bajaj to carry repaired electronic items from house to house. He describes the scooter as cheap to run easy to maintain and practical for navigating crowded city streets with tools and spare clothes stored on board.
Despite such loyal users the overall trend shows a clear shift away from scooters toward more modern two-wheelers and four-wheelers.
Rising Demand for Cars
With growing affluence Indian middle-class families are upgrading from scooters and aspiring to own compact cars. At the Delhi Motor Show the focus was firmly on the small car segment with nearly 10 new compact models launched. Global manufacturers including General Motors Toyota Honda and Volkswagen are all targeting this rapidly expanding market.
Bajaj itself is entering the four-wheeler segment by developing a low-cost car priced around $2,500 in partnership with Renault and Nissan to rival the Tata Nano.
Categories and Keywords
Categories: Business Automotive Industry India Economy Two-Wheelers.
Keywords: India scooters Bajaj cars motor show small cars motorcycles economic growth two-wheelers Delhi Auto Expo.