UP Polls Disrupts Scooter India Sales

Published: Tuesday, August 23, 2011, 18:15 [IST]

Scooter India Limited, the government owned two wheeler and three wheeler manufacturer's sale might be delayed by the forthcoming assembly elections in Uttar Pradesh.

The government of India decided to sell its stake in the scooter manufacturer recently. The decision has to be approved in the parliament. However, the congress party members from UP do not want the sale of Scooters India to become an election issue and wants to postpone the sale.

Scooters India has been incurring losses since 2002-03. It currently has 1,200 regular employees. Scooters India was started by the government of India to build Lambretta branded scooters in India. The Vijai Super was the company's most successful model in India.

Scooters India ventured in to building three wheelers in the early nineties and eventually stopped manufacturing scooters. The company was not able to respond to the sudden demand for scooters and losses mounted.

Several auto makers have been reported to have been interested to buy scooters India. However they have refused to make an official statement.