Motorcycles edge out scooters

It is depressing time for scooter spareparts dealers in Gujarat. Not only is the industry passing through its worst-ever slump but its business has been severely hampered by the increasing consumer preference for motorcycles as opposed to scooters.

"Market for scooter spareparts in Gujarat has reduced drastically and at present the consumption is mere 8 per cent," said Suresh Dewnani, president of the Ahmedabad Scooter Parts Dealers' Association.

The current profitability is negligible and growth is stagnant, he noted.

With new models of motorcycles catering to different segments being launched almost every month, the scooter spareparts market, mostly unorganised, has not been able to cope with the steady decline in sales. Compounding the woes are the three-to-four-year warranty doled out by motorcycle manufacturers.

Even the attractive schemes, offered by automobile manufacturers in terms of finance, service and replacements, have started eating into the income of smaller automobile service shops and mechanics.

The bad run can be easily witnessed with a large number of scooters being dumped in junkyards all over the state. Customers now prefer a new vehicle than spending money on replacing scooter spareparts, added Dewnani.

According to the Ahmedabad Scooter Parts Dealers' Association, which has over 300 members, with so many local players in the market future was not bright.

Devendra Shah, secretary of the Federation of Scooter Parts Dealers' Association, Gujarat, said members were hit hard by the slump in market. The federation, he said, had met the finance minister to reduce tax by 4 per cent.