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Scooter Sale Hike Got The Industry Booming
The factors attributed for this achievement are the grabbing of new customers, arrival of new players in this sector and restructuring the brands to suit the contemporary taste. The Director of SIAM said the trend has reversed from people writing off the scooters with companies repositioning the brands to meet varied customers. The response from urban women and youth both at rural and urban areas contributed much to the scooter sale hike, he said. The domestic market sale of scooters to 14, 62,507 units against 11,48, 007 units in 2009-10 hinting a rise by 27.40%. The major beneficiary of scooter sale hike are Honda Motors and Scooters India Ltd which sold 5,20,466 units in August-October period making a rise of 35.41% against 3,84,369 units in 2009. Currently HMSI has got 44.75% stake in the scooter market by securing the leadership in the segment which was made possible with new launches and upgrading the existing models.
The company"s Operating Head acknowledged the success to the utility value and providing the right product for the right customer. During the time of slow pace of scooters, he pointed out, there was a demand for a market leader to revive it, since Bajaj had washed off its scooter production last year December. The current mean sent wrong signals to the camp of Bajaj as though it took an untimely decision. The long time runner in the scooter segment TVS Motor secured a sale figure of 254812 units during the period which was 175953 units in the same period of 2009, making an increase by 21.91%.
The two wheeler giant Hero Honda too posted a surprising scooter sale figure of 176950 units of scooters against 111811 units in the corresponding period. Hero Honda shares 15.21% in this segment of which the women customers have 70% worth. This customer hold feels convenient with the company"s models like the gearless Pleasure and has changed the notion of scooter being male dominated once. The current sale volume of Hero Honda"s scooters is 27000 units per month which is likely to increase to 35000 to fulfill the demand.
The company"s Senior VP for Marketing and Sales said the time has come to turn towards the scooter segment and more players are entering into it to expand it further. Almost everyone in this segment is confident of continuing the stint in future too at an exorbitant rate, probably double digit, said HMSI"s official. This will be made possible as the segment is witnessing the launches of new brands by major players and the rise in economy.
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