Comeback of Scooters : Gearless Scooters Driving the Sales Growth of Two Wheeler Industry.

Comeback of Scooters : Gearless Scooters Driving the Sales Growth of Two Wheeler Industry. ******************************************************************************** Introduction: ******************************************************************************** Earlier, the scooters segment used to be classified as geared and NON-geared scooters. Currently, the share of geared scooters has ceased to exist. The scooters segment can be further divided into ungeared and electric. Gearless Scooters in the market today are lighter and easier to drive compared with the metal-bodied. Now most of them are four-stroke automatic vehicles that are on par with motorcycles when it comes to fuel efficiency, emissions and performance. The main drivers for this growth are (a) growing acceptability of gearless scooters by men, (b) rising urbanization and increasing proportion of working women and (c) new launches. The Gearless scooter is the fastest growing segment within the two-wheeler industry today. The first sign of a revival in scooter sales was observed in 2008, when the segment notched a growth of 10 percent after declining 1.5 percent by 31 March 2006. ******************************************************************************** Unisex Gearless Scooter: - ******************************************************************************** These scooters are targeted towards all. Irrespective of Gender both male and female customers can use these vehicles. 1. World's largest two-wheeler manufacturer Hero MotoCorp, has launched a masculine scooter Maestro. 2. Yamaha Has also Launched Scooter Called "Ray" for Young Men. 3. Almost all companies are focusing and Launching Unisex Scooters. ******************************************************************************** Opinion of Experts:- ******************************************************************************** PS Sunder :- (Head, Marketing, Hero Moto Corp) ******************************************************************************** "Hero Moto corp’s marketing head PS Sunder admitted that the scooter segment has been vibrant."The gearless versions have provided impetus," he said. "There is tremendous scope for an even greater revival, especially given the opportunities provided through changing lifestyles and betterment of the rural infrastructure.""With the right combination of design and performance could register impressive growth rates in future," ******************************************************************************** Abdul Majeed:- ******************************************************************************** Auto practice leader, PricewaterhouseCoopers:- ******************************************************************************** Abdul Majeed, auto practice leader, PricewaterhouseCoopers says Earlier gearless scooter was aimed at females but honda activa changed that perception. With growthing popularity of activa, competitors have been forced to look at this segment more seriously and hence we are seeing many new product launches in this category.. i think gearless scooters gives more comfort while driving in high traffic situations....which is giving boost to sales..situation has changed now.. "More and more youngsters are now buying scooters," says . "The riding comfort, storage space and the safety factor have all contributed to the scooter's popularity." ******************************************************************************** Ajinkya Firodia:- ******************************************************************************** Marketing manager Kinetic Engineering':- ******************************************************************************** According to Kinetic Engineering's general manager (marketing) Ajinkya Firodia, the shift happened once men began accepting automatic scooters. "Around 60 per cent of the scooter users today are men, and that percentage is bound to increase," he says. "With the entry of 150-200cc scooters into India, men will show more interest in scooters." ******************************************************************************** Surendra Singh:- ******************************************************************************** Sales head at G.S. Motors, a TVS dealer ******************************************************************************** Surendra Singh, Sales head at G.S. Motors, a TVS dealer in Ghaziabad. says. "People look for a multipurpose vehicle these days. That can be driven by men and women. We get calls from customers who want to buy a vehicle that can be used by the family (daughter, wife and son)," says ******************************************************************************** Ravi Chopra, ******************************************************************************** CMD, Piaggio Vehicles Pvt Ltd. says:- Ravi Chopra CMD, Piaggio Vehicles Pvt Ltd. says:- '' We expect scooter segment to grow at a compounded annual growth rate of 20 per cent from 2011 to 2016 even as the overall growth of the two wheeler segment is expected to be around 12 per cent,'' says ******************************************************************************** Mr. Partha Sen ******************************************************************************** Head, Sales and Marketing at LML ******************************************************************************** Mr. Partha Sen Chowdhury, head of sales and marketing at LML said, "We are also planning to come up from the 125cc Unisex scooters and 150cc and above lifestyle scooters. ******************************************************************************** Important Happenings In the Scooter Market:- ******************************************************************************** 1. Almost all two-wheeler manufacturers (including Yamaha - yes Yamaha) have launched a Unisex scooter model. 2. Yamaha too displayed three scooters - Mio, Fino and Xeon -that the company sells in Thailand and Indonesia and also showcased Ray - a concept model. 3. Piaggio, the largest manufacturer of two-wheelers in Europe,re-introduced the iconic Vespa brand in the Indian market The 125 cc scooter. 4. World's largest two-wheeler manufacturer Hero MotoCorp, has launched a masculine scooter Maestro. 5. TVS Motors chose to announce development of a new technology that marries the convenience of the scooter and the mileage of a motor bike. Why Scooter:- ******************************************************************************** Sales of Gearless Scooters:- ******************************************************************************** In the April-September period of 2013, while scooter sales grew 16.6% over a year ago, bikes struggled at just 0.9%. And for the first time in over a decade, scooter sales surpassed motorcycles in a month. Honda Activa, which has over 43% share in the scooter segment, sold 142,000 units in September to overtake Hero MotoCorp's Splendor motorcycle as the largest selling two-wheeler in a month. Splendor managed to sell 124,217 units.Scooter sales volumes have increased their contribution to total domestic sales from 14 per cent in 2007-08 to 24 per cent in 2013-14 gearless scooter market is growing at a rapid pace.In 2011, the size of the scooter segment was 2.20 lakh units. For 2013-14 financial year up to the end of November, Hero MotoCorp is set to sell more than 2 lakh Maestros. This is much more than what it sold during the entire previous fiscal year. ******************************************************************************** Analysis of Secondary Data:- ******************************************************************************** Gearless Scooters. ******************************************************************************** The Sales Of gearless Scooters increasing steadily. The Sales number of the Gearless scooter is keeps on increasing every quarter from 3rd Quarter of 2011 to second quarter of 2013-14 Except for one quarter. Monthly Average Sales of Scooters has also increased on each quarter Except for one quarter. So for the last Seven Quarters Volume and monthly average of the scooters has increased. ******************************************************************************** FINDING 1:- ******************************************************************************** Growth percentage of the Scooter is much higher than Motorcycle. Gearless Scooters are driving the sales of the two wheeler industry. ******************************************************************************** FINDING 2:- ******************************************************************************** It can be seen from the above graph Market share of the Gearless Scooters has increased for last many years. It has increased from 18% to 25% since last four years (2010-2013). Now it is about 35% in the year 2017. Experts estimate it will also cross 50% in next few yrs. In the 2010-11 Gearless scooters growth rate was 41.8% and for 2011-12 it was 23.32% It can be seen from the above graph that market share of Gearless Scooter has been increasing continuously since 2006-07 and Market share. Percentage of volume growth is higher in Gearless Scooters Segment than in Motorcycle and moped Segment. It can be seen from the above graph Sales Volume of the Gearless scooters has increased continuously for 5 years from 2007-2008. For the year 2011-12 2.6 million units of the Gearless Scooters were sold. Honda is market leader in gearless scooters retaining market leader position with flagship brand Activa. Hero has overtaken second position from TVS. TVS is on third position followed by Suzuki and Mahindra. Most of the Gearless scooters companies targeting 100 cc and above segment and acquiring the Market share of Motorcycles. Honda Is a Market leader with 50.8% Market share with their gearless Scooters Activa, Dio and Aviator. Hero moto corp has 17% market share with Brands like Pleasure and Maestro. Suzuki With brands like Accesss and Swish targeting 125 cc category and has 12.3% market share. ******************************************************************************** Conclusion:- ******************************************************************************** Gearless Scooter segment in Two Wheeler industry is increasing and It would Remain So due to the Utility of the vehicle fashion trend, Safety factors, Value for money, increasing Urbanization and Increasing participation of Women in jobs and Economy of India. ******************************************************************************** Limitation and Scope: ******************************************************************************** There is Scope For identifying factors Customers take into consideration while Differentiating two brands of Gearless Scooters and to identify the segment within the Gearless Scooters market.