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Scooter sales plunge, motorcycles surge in December

Sales of two-wheelers in December were mixed, with the sales of scooters and mopeds falling, while those of motorcycles rising, the Society of Indian Automobile Manufacturers (SIAM) said on Wednesday.

The figures include export sales and showed that scooter sales in December plunged 55.5 per cent to 51,474 units from 115,643 a year earlier.

The sales of market leader Bajaj Auto fell by a steep 69.2 per cent to 17,936 units. Scooter sales declined 25.9 per cent in April-December 2000 to 686,508 units, SIAM said.

"Scooters are out of favour with customers. But December should be the bottom with some improvements," said an analyst with a foreign brokerage.

Motorcycle sales rose 10.1 per cent to 178,247 units in December from 161,975 units in the same period last year. Motorcycle sales were up 26 per cent at 1,577,170 units in April-December.

Sales of Hero Honda, the largest motorcycle maker, grew 25.4 per cent to 85,785 units in December. The firm sold 754,794 motorcycles in April-December, up 40.6 per cent in the same period last year.

Motorcycles have been the greatest beneficiaries of a shift in consumer preference away from scooters. Analysts said that consumers would continue to buy more motorcycles owing to their greater fuel-efficiency, sturdiness and higher resale value.

"Motorcycles sales should grow until they reach about three times scooter sales," the analyst said. Currently, they are a little more than double scooters sales.

Third quarter results of two-wheeler companies have reflected these contrasting fortunes.

Scooter-maker Bajaj Auto, last week, reported a 78.2 per cent fall in its October-December net profit, while motorcycle maker Hero Honda's profits surged 44 per cent.

SIAM said that sales in the moped segment fell 23.9 per cent in December to 45,643 units, while sales in the April-December period were 1.03 per cent higher at 532,012 units.

Three-wheeler sales grew 8 per cent to 163,745 units in April-December 2000, the statement said.

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