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Can Bajaj Auto stay away from scooters? Chairman Rahul Bajaj doesn’t think so.By:Kyle Pereira |Published :March 01, 2011 

Scooters: you either adore them or you abhor them. Either way, they are here to stay. But Bajaj Auto did not think so. In 2009-end, Managing Director Rajiv Bajaj announced that Bajaj was exiting the scooter business. In January 2010, they pulled the plug on the Kristal, their last offering in the segment.

In India, the scooter craze was given a shot in the arm more than two decades ago by the Kinetic Honda. Sales of geared scooters, mainly the Bajaj Chetak and the LML range, had dipped, then plateaued and then came the Kinetic Honda that started selling like hot cakes. It reigned supreme till the advent of another legend -- the Activa in 2001 -- which also happens to be a Honda, albeit with no connection to Kinetic.

What Honda saw was serious potential in the market and they put their ears to the ground. They realised that people still wanted the virtues of a scooter – ample space to load up the groceries and relatively good weather protection (when compared to a motorcycle) – but they also wanted added convenience. While the Honda Eterno’s sales hardly took off, the Activa’s numbers shot through the roof – proof that the new scooterist wanted the convenience of an automatic twist-and-go scoot and not the clutch/gear ritual of the older geared scooters.

Honda’s Activa has done so well that if you look into the second-hand market, it’s very difficult to come across a good specimen for sale. Even if you do sight one, most certainly it won’t be a steal. And if you decide to buy one brand new, there is a waiting period in excess of six months. Honda sold a total of 7,46,501 scooters in 2010-11 – 1,29,395 more units than the motorcycles they sold in the same year. Growth is a healthy 24 per cent over the last financial year.

N K Rattan, Operating Head - Sales and Marketing, Honda Motorcycles & Scooters India, says “We entered the market with scooters and it is the scooters that have driven our growth rapidly and brought us brand recognition. We have removed the dated image of scooters in the minds of people by updating them with technology and efficiency. Thus we have proved that scooters do not have to be lesser than motorcycles. We will continue catering to our scooter customers as we do to our motorcycle buyers. In fact, we will be launching a new scooter sometime this year.”