LML to launch new scooter models

Beleaguered two-wheeler maker LML is working on a slew of new products in the scooter segment, which will be launched over the next 12 months.

"We are in advanced stages of developing the new products and plan to launch them in the next one year," a senior company executive said, but did not give any details on the new products. "The scooters would be contemporary with the latest technology," he said. The news of the new launches buoyed the company's shares that rose to Rs 14.60 at 12:25 PM from Rs 13.90 on the Bombay Stock Exchange.

The Kanpur-based Lohia Machines re-entered the domestic market with its Vespa brand of geared scooters in August after an 18-month hiatus. LML had stopped production in February 2006 due to fund crunch. LML currently sells 1,500 scooters per month in Delhi, parts of Punjab, Haryana and Jammu and Kashmir.

"We first want to cover the Hindi belt with our new products. We would also reach out to east India and west Uttar Pradesh markets with our new products," he said. "We are the only manufacturers with geared scooters and are very optimistic about getting good response," the LML executive said.

On motorcycles, he said the company deliberately wants to avoid re-entering the crowded segment. "The motorcycle industry is showing signs of slowing down. Even when we had motorcycles in our portfolio, their share was very less in our total sales," he said. Earlier, LML used to market Adreno FX, Beamer, Energy FX, Freedom and Graptor motorcycle models in the 110cc-150cc range.

"However, going forward we may also look at the segment as we already have the technology," he said. Motorcycle sales in India, the world's second-largest market, fell 14.4 per cent on year to 2.17 million units during April-August, according to the Society of Indian Automobile Manufacturers.

However, sales of scooters rose 19 per cent to 435,164 units during the same period in a market that is dominated by Honda Motorcycle and Scooter India, a wholly owned subsidiary of Honda Motor Co of Japan.

LML had resumed partial operations in April this year with the export of geared scooters to Egypt and a few other African countries.

"We are also selling our scooters in Japan, Korea, the Philippines, Europe, New Zealand, Australia and the US," he said. The company sells 5,000 units of its NV SPL model, known as Stella, abroad. "For the time being, our focus is on the export market as the returns are much better there," the executive said. LML had stopped production at its Kanpur plant in February last year due to financial problems. The plant has an installed capacity of 300,000 scooters and 240,000 motorcycles.