Crowd pullers

- By Kumar Anshuman

Wed Oct 31 18:21:15 GMT 2012

Monday, October 15: Toyota introduces limited edition versions of its compact Etios, sedan Corolla Altis and sports utility vehicle Fortuner.
Tuesday, October 16: Maruti launches the Alto 800, a revamped version of the all-time best-seller. Tata Motors introduces a face-lifted Manza sedan.
Wednesday, October 17: A day of the SUVs. Tata Motors launches the Safari Storme and Mahindra introduces the Ssangyong Rexton in India.
Thursday, October 18: Honda launches the automatic version of its compact Brio.
No, the Auto Expo has not started ahead of schedule. The back-to-back launches are an attempt by the carmakers to cash in on the shopping spree in the festive season. More importantly, it is the last shot at a revival in a disappointing year for the industry.
All is not well in the automobile sector, which had been a major force behind the growth of the Indian consumer market. Though the passenger vehicle segment showed a 7 per cent growth in the quarter ended in September against the same period last year, there are many dots that remain unconnected. The passenger car sales showed a negative growth in the quarter, compared with the same period a year ago. In September, it dropped 5.6 per cent, prompting the Society of Indian Automobile Manufacturers (SIAM) to revise its growth forecast for the industry for 2012 from 10-12 per cent to 9 per cent.
Reasons are many for the slowdown—from high fuel prices to hard interest rates. The good thing is, carmakers have aggressive plans to overcome it. With the festive season about to start, the industry is pinning its hope on the new launches. “For September 2012, automakers posted poor year-on-year sales,” said Yaresh Kothari, analyst at the stock broking company Angel Broking. “However, this comparison is meaningless considering the shift in festive season to October-November this year from October in 2011.”
Those who do not have new launches are trying to catch the attention of the buyers with new or limited edition variants of existing models. “We have introduced a whole new range of limited edition vehicles to provide our customers something new and trendy for the festive season,” said Sandeep Singh, deputy managing director, marketing, Toyota Kirloskar Motor. Toyota's limited edition line-up includes Etios TRD Sportivo, Corolla Altis and Fortuner TRD Sportivo.
The Maruti Alto lost its crown as India's best-selling car to the bigger sibling Swift sometime in April. Now the compact is ready for a comeback in a new skin. “The Alto is an aspiration of many of the middle class in the country,” said Mayank Pareek, chief operating officer, Maruti Suzuki. “The start of the festive season is the best time for a launch, as we have always seen an increase in demand during this season.” The Alto 800 has already had more than 21,000 bookings and is attractively priced at 02.44 lakh for the base model.
The most eagerly waited among the recent launches was the Rexton by Mahindra's Korean subsidiary Ssangyong. Priced at around 018 lakh, it will compete in the mid-level SUV segment with the likes of Fortuner and Renault Koleos. Mahindra, which tasted success last year with its XUV 500 soft-roader, is again betting high on SUVs. It has also launched a compact SUV called Quanto. 
“It is the completion of a dream at Mahindra to straddle the entire product spectrum in the SUV segment with a diverse portfolio of offerings at distinctive price points and value,” said Pawan Goenka, president, automotive and farm equipment, Mahindra & Mahindra.
SUVs bucked the gloom in the sector with a rising demand in big cities. Earlier, they have more takers in small cities and rural areas. In the quarter ended in September, SUV sales went up by more than 50 per cent. “We were the first to introduce SUVs in India,” said Karl Slym, managing director, Tata Motors. “With the new Safari Storme we now leverage our experience and customer understanding, creating an ideal SUV for today’s motorists, who desire in their vehicle a perfect combination of versatility and luxury.”
In the premium segment, Mercedes-Benz has launched sport editions of its popular C Class and the E Class saloons. The company, however, attributed the launch to the Formula 1 Indian Grand Prix, rather than the festive season. “The launch of these cars coincides with the Indian Grand Prix fever which is soon going to grip the nation, especially after the tremendous success of the last year's race,” said Debashis Mitra, director, sales and marketing, Mercedes-Benz India.
More cars are getting the final touches in the factories—the new Beetle from Volkswagen; a hatchback, a multipurpose vehicle and a sedan from General Motors; and the much anticipated EcoSport and the new Endeavour from Ford. “Historically festive seasons have changed the course of market and it has always helped the industry,” said Vishnu Mathur, director-general, SIAM. The stakes are higher this time.

HellPG!

- By Kumar Anshuman

Tue Oct 23 12:21:45 GMT 2012

On September 13, the Union government capped the number of subsidised LPG cylinders to six per household a year. Although such a move had been in the offing for a while, its sudden announcement, sans any blueprint on how to implement the scheme, threw consumers and distributors off balance.
“This has created complete chaos,” said Shailesh Jain, president, All India Indane Distributors Association. “The biggest problem is that now we have the same 14.2kg cylinder at four different prices.” According to Jain, there is no clarity on how to distribute the four categories of cylinders: subsidised, non-subsidised, commercial and exempt.
Adding to the confusion, the government announced three extra subsidised cylinders for consumers in Congress-ruled states. Distributors, however, say they are yet to receive notification from state governments. “We have read about the decision to give three extra cylinders, to be subsidised by the state, for domestic consumption,” said Kristofer Atharva, an LPG distributor in Mumbai. “But we haven't received any notification from the state government.” According to Atharva, distributors are unsure whether the subsidy would be given to them or to the company directly.
“This needs to be clarified to reduce the woes of consumers and oil marketing companies,” said George Paul, executive director, Bharat Petroleum Corporation Ltd. “First, state governments will have to decide whether to give subsidy to all consumers or only to target groups such as families below poverty line.”
Also, a mechanism for paying the subsidy to the oil companies needs to be set up. One way would be to pay the Union government, which, in turn, would pay the oil companies. “All this is still not worked out, so the announcement is merely a political stunt,” said an LPG distributor.
Many people complain that six subsidised cylinders a year are inadequate for joint families. “Most of the times, six cylinders a year are sufficient for a nuclear family,” said Sachin Patil, a domestic consumer in Mumbai. “It might not be the case for joint families. The black marketing of domestic cylinders to commercial users such as restaurants and LPG vehicles will remain a worry.”
In rural Maharashtra, where most of the households have joint families and many vehicles run on LPG, the possibility of hoarding is alarmingly high. “We are completely clueless about how the state administration is going to act against the hoarding and illegal use of LPG,” said Mukteshvar Munashettivar, general secretary, LPG Consumers Association.
Saiyed Asif, a domestic consumer in Delhi, complained that subsidised cylinders were hard to get. “Whenever I call the agency people, they say that subsidised cylinders have not come and only cylinders with market price are available. According to the agency, a cylinder will cost me around 01,000,” he said.
Jain, however, denied it. “No distributor can charge extra. Six subsidised cylinders are a consumer's right. Everyone will get that,” he said.
In Karnataka, though, distributors have been implementing the scheme without any hassle. “The scheme is already operative and there is no shortage of cylinders. Consumers are getting them on time,” said N. Sathyan, secretary of All India LPG Distributors Federation (Karnataka Circle).
The real pinch of the subsidy cap is being felt by anganwadis, non-governmental organisations, government-run hostels, hospitals and schools implementing the mid-day meal scheme. Though these organisations were not under the domestic household category earlier, they used to have a quota of subsidised cylinders, considering the social welfare schemes they were implementing. “Under the new scheme, only domestic households are entitled to subsidised cylinders,” said Sathyan. “The quota for social welfare institutions has been removed. So they will have to buy cylinders at market rate.”
Oil companies are now focusing on identifying more than one connection under the same address. “If there are more than one connection under the same name and address, we immediately disconnect all but one,” said George Paul. “However, there are cases in which on the same address, there are multiple connections with different names. In such cases, we are trying to figure out whether these are separate families.”
Several Union ministers have voiced their opposition to the decision to cap the number of subsidised cylinders. Human Resources Development Minister Kapil Sibal wants the petroleum ministry to continue providing subsidised cylinders for the mid-day meal programme. In a recent Union cabinet meeting, Agriculture Minister Sharad Pawar raised the problems faced by the residents of housing societies, who are given cylinders registered under the name of the society.
The complaints have prompted the ministry of petroleum and natural gas to prepare a blueprint on how to implement the scheme effectively. It will be presented to the Prime Minister's Office on November 15. Until that plan is implemented, consumers and distributors will have to bear the brunt of the hastily taken decision.
with Niranjan Takle & Abhinav Singh

Gas Trouble
Cost of LPG cylinders
 in Delhi
Subsidised – Rs410.50
Non-subsidised – Rs895.50
Exempted – 11,075
Commercial (19kg) – Rs1,536

Source: BPCL

Talking on Lok Sabha TV on six years of MGNREGA: Analysis and way forward.

Frosting over Robert - By Prabha Jagannathan and Kumar Anshuman Tue Oct 16 11:02:49 GMT 2012 Rumours of shady deals of Robert Vadra, son-in-law of UPA chairperson Sonia Gandhi, had for long been floating around in political circles. But they never appeared in the media—until activist-turned-politician Arvind Kejriwal took him head on. Kejriwal revealed that Vadra had taken an interest-free loan of Rs65 crore from real estate giant DLF to buy properties worth hundreds of crores at prices far below the market rate. Documents presented by him showed that five companies floated by Vadra in or after November 2007 had total share capital of Rs50 lakh. They all had a common address—268, Sukhdev Vihar, New Delhi—and had no visible business activity. Yet, in three years, the companies acquired properties that were worth well over Rs300 crore at the time of acquisitions. “What's interesting is that the seed money for these acquisitions has come from unsecured interest free loans from DLF,” said Kejriwal. “The bulk of properties were purchased from DLF at a rate which was far below the market price.” The documents show that Vadra bought seven flats in DLF Magnolias in Gurgaon for Rs5.2 crore and a 10,000sq.ft penthouse in DLF Aralias in Gurgaon for Rs89 lakh. Also, one of Vadra's companies bought a 50 per cent stake in DLF Hilton Hotel in Saket, Delhi, for Rs31.7 crore. “The market value of this property was well over Rs150 crore,” said Kejriwal. It is alleged that Vadra was given unsecured loans in exchange for political favours. According to Kejriwal, the Congress government in Haryana gave 30 acres meant for the construction of a hospital to DLF for developing a special economic zone—a move that was later reversed by the Punjab and Haryana High Court. It is also alleged that the Haryana government modified the bidding process for the construction of a 350-acre golf course so as to benefit the company. DLF, however, denied the allegations. “We wish to categorically state that DLF has given no unsecured loans to Mr Vadra or any of his companies,” said the company in a statement. “An amount of Rs65 crore was given as business advance for the purchase of land as per standard industry practice.” According to DLF, Vadra purchased apartment in Aralias in September 2008 at Rs12,000 per square foot, which was the prevalent market price then. Vadra, the company said, paid a total of Rs11.90 crore for the apartment. “The allegation that seven apartments in Magnolias were sold for Rs5.2 crore only is also completely baseless,” said a company official. The allegations, however, have done the damage. The share price of DLF, which is already reeling under debt, has started falling. Goldman Sachs has downgraded DLF, advising investors to avoid buying its shares. The Congress, however, is the hardest hit. With Assembly elections looming in Gujarat and Himachal Pradesh, party leaders are struggling to contain the damage. Union Law Minister Salman Khurshid scrambled to Vadra's defence, saying an attack on the integrity of the Gandhi family was an attack on the Congress itself. Finance Minister P. Chidambaram ruled out an inquiry into the issue. “Unless there is a specific allegation of quid pro quo or corruption, private transactions cannot be allowed to be questioned on the basis of imputations and insinuations,” he said. Evidence that Kejriwal's allegations had hit home came on October 5, when Sonia issued a brief statement defending Vadra. “There has been no misuse of the office of the Gandhi family or any misuse by Robert Vadra. Vadra is a businessman. His transactions are transparent and above board,” she said. Vadra, too, maintained that he had done no wrong. “I am a private law-abiding citizen.... My business transactions are fully reflected in financial statements filed before appropriate government authorities in compliance with the law,” he said. Congress spokesperson Rashid Alvi dared Kejriwal to take the matter to court if he had any proof of Vadra's wrongdoing. Said a Congress leader: “If they had proof, the India Against Corruption, which is chock-a-block with PIL lawyers such as Prashant Bhushan, would have gone to court. It is clear that the allegations are baseless. Their aim is to milk the issue for political capital.” Senior lawyer Harish Salve, who has represented DLF in the past, indicated that DLF, Vadra and the Congress might consider suing Kejriwal for defamation. “Allegations have to hold up as evidence in court,” said a senior Supreme Court lawyer. “A quid pro quo between the respective governments and DLF, which has to answer to its shareholders, has to hold up in court. Under the Companies Act, there is no apparent illegality.” Prasanth Bhushan, however, asserted that there was indeed a case against Vadra. “Prima facie, the facts show the commission of offences under the Prevention of Corruption Act as well as the Income Tax Act,” he said. Then why not go to court? “This battle will be fought in the court of the people of this country,” Kejriwal said. He upped the political ante by demanding that the Haryana government issue a white paper on land deals since 2007. He said that he had more exposes up his sleeves to hit the Congress hard. Curiously, the opposition BJP has been soft-pedalling the issue. It reluctantly demanded an inquiry into Vadra's business dealings, fearing that it could prove to be a double-edged sword politically. “The BJP is a responsible political party and we have never taken up charges unless it is backed by strongly documented proof or reports from agencies such as the Comptroller and Auditor General,” said BJP spokesperson Nirmala Sitaraman. The BJP, however, will be hoping to reap the benefits of the controversy in the Assembly elections in Gujarat and Himachal Pradesh. The Congress can do little now, except go on the defensive and work hard to put its big-ticket reforms back in the spotlight. Property listed in the balance sheet of Vadra’s companies * 50 per cent share in DLF Hilton Hotel, Saket, Delhi - Rs31.7 crore * 10,000sq.ft apartment in DLF Aralias, Gurgaon - Rs89 lakh * Seven flats in DLF Magnolia -Rs5.2 crore * One flat in DLF Capital Greens - Rs5 crore * Plot in Greater Kailash II, Delhi - Rs1.2 crore * Land in Bikaner - Rs1.02 crore * Six additional properties in Bikaner - Rs2.43 crore * Land in Manesar, Haryana - Rs15.38 crore * Land in Palwal, Haryana - Rs42 lakh * Two plots in Hayatpur, Gurgaon - Rs4 crore * Six plots in Hassanpur, Haryana - Rs76lakh * Two plots in Mewat, Haryana - Rs95 lakh * Agriculture land in undisclosed location - Rs69 lakh

Renault launches Scala - By Kumar Anshuman Mon Oct 15 08:01:01 GMT 2012 Renault India has announced the launch five new vehicles in the next 18 months—the new Scala is fifth in the lineup. Scala comes after Renault’s serial launch of four vehicles—the premium saloon car Fluence, luxury SUV Koleos, premium hatchback Pulse & the SUV Duster. According to the company Renault Scala, a premium A3 segment sedan, is a logical progression for Renault India to further strengthen Renault product portfolio in the Indian car market. The car has been placed to compete with the likes of Nissan Sunny. During the launch of the Scala, Marc Nassif, MD, Renault India Pvt Ltd, commented: “With the launch of the premium sedan Scala Renault India is now present across all segments of the Indian car market with products which meet customer expectations and aspirations. This will further enhance Renault’s presence in the country. Loaded with features and powered by Renault’s new generation 1.5 dCi (K9K) engine Renault has tried to bring comfort, convenience, styling, safety and technology with smart pricing. ENGINE & TRANSMISSION The Renault Scala will be available in both variants­—petrol and diesel. For the diesel variant it will use the reliable and fuel efficient 1.5 K9K dCi diesel engine delivering a powerful performance of 86PS@3750rpm as maximum power with a peak torque of 200Nm@2000 rpm. The engine is mated to a 5-speed manual transmission with a fuel efficiency of 21.64kmpl. The powerful petrol variant uses the 1.5 XH2 engine with a displacement of 1.5 litre. It produces a maximum power of 99PS@6000rpm with a peak torque 134Nm@4000rpm. The petrol engine is mated to a 5-speed manual transmission with a fuel efficiency of 16.95kmpl. FEATURES & EQUIPMENT Scala comes with features like premium leather upholstery, steering mounted audio controls, automatic climate control, follow me headlamps,  multifunctional smart key, electrically adjustable and foldable outside rearview mirrors (ORVM). The exterior of the car has an elegant design—chrome radiator grill, smoke-styled headlamps, dual tone rear bumper, chrome finish door handles, rear chrome garnish and 15 inch sporty alloy wheels. The traveling comfort is further enhanced by the separate rear comfort blowers. The armrest at the rear seat provides an added comfort with wide and stylish seats. The Renault Scala is loaded with safety features like dual airbags for the driver, and the passenger, ABS with EBD and brake assist, anti-pinch power window and speed sensing auto door lock. Renault Scala will be available at a price ranging from Rs 6.99 lakh to Rs 9.57 lakh (ex-showroom, Delhi). Renault Scala will be manufactured at the Renault manufacturing facility in Oragadam, Chennai, and will be available at all Renault dealerships across the country in five exciting colors—Pearl White, Metallic Silver, Metallic Red, Metallic Blue and Solid Black.

Camry, born in India - By Kumar Anshuman Mon Oct 15 07:58:27 GMT 2012 It was first introduced in 2002 in India and till date it was available as a completely built-up unit (CBU) from Japan. But now, Camry is available with all assembling done here in India. Toyota announced the launch of a new Camry—its seventh generation—today in Delhi. Camry will be assembled at a separate assembly line within Toyota Kirloskar Motor’s (TKM) second plant located in Bidadi, near Bangalore, in Karnataka. The all new Camry has been styled befitting a prestige sedan. The company claims the car offers best-in-class cabin space, derived from the impressively designed wide body. The super silent passenger cabin provides a luxurious and quiet ride. This further reinforces the growing importance of TKM in Toyota’s global operations. The new Camry is currently being manufactured in 10 plants across the globe and TKM will be the 11th one. “The local production of New Camry of global standards will mark an important milestone in the history of TKM,” says Hiroshi Nakagawa, Managing Director, Toyota India. The new Camry comes with an Emotional and Rational Appeal (ERA), thereby making it the New ERA Sedan. It offers excellent space, high power, torque, fuel economy at par with the segment in the industry, excellent driving stability and drive comfort. Camry has been a champion when it comes to design and the new model is quite closed to expectations.  The car has wide, luxurious and firmly planted front design. The roof design has also been advanced leading to more head room. The hood has also been elevated to give it a stately look. The car has got smart entry system with concealed sensors which sense human presence. The interiors have been carefully crafted to provide a heightened sense of luxury and space that creates an emotional appeal. It has got 8-way power adjust driver and passenger seats with easy access buttons. Curved roof lining liberates generous headroom. New seat design and larger sliding range creates more legroom at rear.  The new vehicle is powered with a powerful new gasoline engine, 2.5 liter Dual VVT-i, that generates maximum power of 181PS@6000rpm and highest torque of 231NM@4100rpm. It comes with a 6-speed automatic transmission with a sequential shift. The new model is priced at  23,80,000 (ex showroom Delhi) and  is available in four vibrant colours—white pearl crystal shine, silver metallic, attitude black and beige metallic.

Elantra reborn - By Kumar Anshuman Mon Oct 15 07:54:45 GMT 2012 Hyundai Motor India Ltd on Monday announced the launch of the neo-fluidic Elantra in India. The new edition boasts of futuristic design, luxurious interiors, advanced high-end features and cutting-edge technology. This is the fifth version of the car which was first launched in 1990. The current version was first launched in the US and Korean market and is doing very well in terms of sales. Speaking at the launch, Mr B.S. Seo, Managing Director & CEO, HMIL said, “The Elantra has received an overwhelming response worldwide. We are confident that it will set a new benchmark in the executive car segment in India. With contemporary styling, design and all the advanced features the neo-fluidic Elantra will give an immense driving pleasure and comfort to the customers in India.” The fifth generation neo-fluidic Elantra comes with various segment unique features like front ventilated seats, and advanced safety features like vehicle stability management (VSM), silica tyre and solar glass. Additionally it also sports a number of high-tech features like smart key with push button start, 10-way adjustable power driver seat with lumbar support, dual zone FATC, auto cruise control, automatic headlight control, 16-inch Alloy wheels and much more. To ensure enhanced comfort and convenience, the neo fluidic Elantra offers features like electrically adjustable, foldable and heated outside mirrors with turn indicators, rear AC vents, cooled glove box, eco-driving indicators, 2 DIN MP3 audio-with-USB player, with Aux-in and iPod cable feature for unlimited music access. The audio control on the rear armrest is a delight for the backseat passenger. Another noticeable aspect of the car is its safety features. Hyundai has gone a step ahead in the security features. It comes with six airbags, and has got speed sensing auto door lock and impact sensing auto door unlock. To assist safe and easy parking, the Elantra also offers rear Parking Camera with display on electro chromic mirror (ECM) along with the parking sensors. With all these features Elantra becomes the first car in the ultra-sedan segment with security features matching the luxury sedan. The neo-fluidic Elantra will be available with two engine options—1.8L petrol dual VTVT delivering 149.5PS@6,500rpm of maximum power and 18.1Kgm@4,700rpm of peak torque and the 1.6L diesel VGT CRDi delivering 128PS@4,000rpm of maximum power and 26.5Kgm@1,900-2,750rpm of peak torque. Both the petrol and diesel versions offer the segment unique choice of 6-speed manual transmission and 6-speed automatic transmission. The company claims that 1.6 L Diesel engine offers a mileage of 22.7kmpl (ARAI figure) while the 1.8L petrol version clocks 16.3kmpl (ARAI figure). The petrol engine model starts at an attractive price of Rs 12,51,000 and goes up to Rs 14,74,000. The diesel engine model starts with a price of Rs 12,91,000 and goes up to Rs 15, 85,000. There are not much cars in Rs10 to Rs15 lakh segment. Maruti launched Kizashi but the car is not doing well. Corolla Altis is a good car but Elantra takes a lead in pricing and better facilities. The car has got pre-bookings of over 750 units which reflect the demand prospect of the car.

Total Recall - By Kumar Anshuman Mon Oct 15 07:49:26 GMT 2012 Toyota Kirloskar Motor (TKM) announced the recall of Corolla Altis (July 30, 2008—December 31, 2008) and Camry (September 1,2006—July 31, 2008) vehicles over a quality issue. The Power Window Master Switch (PWMS) of approximately 8,700 vehicles in India will be inspected. Toyota had received complaints that the power window on the driver’s side does not work smoothly and sometimes emits smoke. Based on the complaint, the company announced the recall of around 74,30,000 vehicles across the globe. The Indian announcement is also part of the global recall. On certain Corolla Altis and Camry models, the PWMS had become notchy or dysfunctional. This could be due to wear and tear of specific contact points in the PWMS over time. Owners of the vehicles, covered under this Recall Campaign will receive a notification by letter or call from Toyota. The Recall Campaign will be conducted from November onwards, across all authorized Toyota dealers in India. Customers can also contact the nearest dealer to find out if their vehicles fall under this category. Authorized Toyota dealers will inspect and replace, if deemed necessary, the faulty component free-of-charge. The repair is expected to take approximately one hour, depending on the dealer’s work schedule. No other Toyota models, sold in India, are covered by this campaign. The company will also notify Society of Indian Automobile Manufacturers (SIAM), as part of the voluntary code on vehicle recall, even though the recall does not fall within the purview of any safety hazards. The company has requested its customers not to panic as this is not a safety hazard but only a precautionary measure, voluntarily carried out by the company. Toyota was considered to be a brand with pristine quality but in recent past the company has to recall around 1.4 crore vehicles across the global due to various technical faults. The current recall will add further to the growing dissatisfaction over its vehicles.

Scooter got hotter - By Kumar Anshuman Mon Oct 15 07:24:49 GMT 2012 Remember Audrey Hepburn and Gregory Peck in Roman Holiday on a Vespa? The movie immortalised the Vespa. Now, Bollywood is rediscovering the scooter. Think Shah Rukh Khan and Deepika Padukone in Om Shanti Om or Kareena Kapoor in 3 Idiots or the scooter in the song Bhag bhag D.K. Bose... from Delhi Belly. And, the comeback of the two-wheeler is a reflection of the changed perception about scooters in the Indian market. In the mid-1980s, Japanese makers, through joint ventures, launched the era of the 100cc bikes. Stylish, light, four-stroke and fuel-efficient, motorcycles edged out scooters. And, this was at a time when owning a scooter was aspirational for the Indian middle class. TV commercials like the Hamara Bajaj jingle showcased the bond Indian families shared with their scooters. In 2012, everything has changed, including the scooter. From being a stolid family vehicle, the scooter has become classy, trendy, cool and funky for its new target customers. “Yes, in the last decade the scooter market has been growing significantly,” said Ravi Chopra, CMD, Piaggio Vespa Pvt Ltd. “Year on year the category has been growing faster than the overall two-wheeler category.” This growth is significant because while the entire two-wheeler industry has grown at 6 per cent, motorcycles have grown only at 2 per cent till August 2012, as compared to the same period last year. Though motorcycles have a larger base, the growing acceptance of automatic scooters has pushed every manufacturer to fight for a piece of the pie. The growth in scooters is so significant that Hero Motocorp has sold 45,000 scooters, its highest sales ever, in August. Today, every fifth two-wheeler sold in India is a scooter. Strangely, the company which once led from the front has now quit the scooter market. Bajaj Auto is a bike manufacturer today, and has decided not to re-enter the scooter market. So, the credit for the second wave must go to Activa, by Honda Motors, which was launched in 2001. There is no doubt that films have helped a lot in generating a demand for scooters. Kareena’s scooter in 3 Idiots is an important cog in the story, with its own character woven into the film. It created a lot of demand among girls, and among youth in general. “With changing lifestyles and aspirations, the film industry’s portrayal of new-age women riding scooters is on the rise,” said the spokesperson for Honda Motors. “Such promotions do bring the segment into limelight and expand awareness about the ease of convenience automatic scooters provide for mobility.” But, some manufacturers are not convinced about this. “Perhaps it has helped in some way, but we are not sure how much,” said Chopra of Vespa. “Being featured in Bollywood movies helps in a subconscious way.” There are few changes in scooters of yore and now. “The new-age scooter is fully automatic,” said Viren Popli, executive vice-president, Mahindra Two Wheelers. “Apart from having four-stroke engines, better fuel efficiency and the need for minimal parking space are the other highlights. In fact, parking is one aspect where scooters score over bikes.” The automatic scooters are convenient for commuting in city traffic. The target customer, too, has changed for companies. The new Vespa with its retro styling costs over 060,000, a first for scooters in India. It, perhaps, signals the start of a luxury segment in scooters. “Vespa in India will meet the aspirational needs of the fashion, style and brand-conscious youth who would like to be exclusive, distinctive and a breed apart,” said Chopra. “It is for those who want to ride in style and make a fashion statement as well. It is not just a scooter, but a means of expression and an extension of their personality.” Manufacturers are mostly marketing scooters among women and girls and placing it as secondary two-wheeler in the house. “Honda’s scooter portfolio caters to the varied needs of the customers, including the new age Indian lady,” said the spokesperson. “We have Activa, the first choice of a family, the stylish Dio for youngsters and Aviator for premium male customers.” Said Popli: “The customer is predominantly a working woman or young girl child, but the scooter is now preferred by everyone in the family to travel to nearby places like the vegetable market or grocery shop.” Mahindra has five brands of scooters, including Flyte, which appeared in 3 Idiots. Yamaha, a leading motorcycle player, has joined the fray by launching its Ray brand of scooters in September. “The decision to enter the scooter segment in India was arrived at by seeing the huge demand that this segment is witnessing in the country, with college students and young working women showing increased affinity to purchasing lightweight and highly efficient scooters,” said Hiroyuki Suzuki, CEO and MD, India Yamaha Motor. Currently, there are seven active players in the scooter market. Honda Motors tops the chart; every second scooter sold is a Honda. And newcomers like Mahindra, Yamaha and Vespa are doing everything to woo buyers. Mahindra’s brand ambassador is Kareena; Yamaha has Deepika. Hero has roped in Priyanka Chopra, while TVS Motors has Anushka Sharma. “In our case, Kareena as a sales girl brought our dealership alive,” said Popli. But some like Vespa do not think that they need a brand ambassador. “We have no brand ambassadors. We believe Vespa is our hero,” said Chopra. “The marketing strategy aims to connect with people who look at an automobile as a statement and not just a means to commute.” The auto companies may differ on marketing and promotional strategies of their brand, but they all admit that the scooter market is growing. “The continuous effort by us to innovate and provide additional value to the customers helped improve the image of scooters in the mind of customers and led to the revival of scooter segment,” said the Honda spokesperson.