Mopeds dying a slow death

In 2004-05, they accounted for just 5% of total two-wheeler sales.

Mopeds, which for decades have provided the lower middle class with mobility and were once the popular choice of two-wheelers for those careful about their saris or skirts, are on their last wheels.

Their use in films by stars Aamir Khan (Sarfarosh) and Salman Khan (Hello Brother) may have given them a shot at glamour, but this failed to arrest the decline in sales. Today, only those consider buying a moped who cannot shell out the higher cost of a motorcycle or scooter. And their numbers are not growing.

Demand for mopeds in the country is a mere 320,000 (2004-05), translating into a measly 5 per cent of the total two-wheeler market, down from a none-too-better 6 per cent in the previous year.

Sadly for the humble moped, TVS, which has an overwhelming 80 per cent of the market, appears resigned to its fate. Says its chairman and MD Venu Srinivasan, "(In volume terms) it may remain where it is today, but as a percentage of total two-wheeler market, it will come down."

Missing here is the drive that Srinivasan showcased in making TVS a force to reckon with in motorcycles despite its boat being severely rocked by a split from Suzuki and stiff competition from Hero Honda and Bajaj Auto.

Also missing among moped manufacturers is the resolve of Honda, which got into scooters when their sales were dwindling and revived the segment.

TVS sold 258,000 mopeds in the last financial year, a 4 per cent growth over the previous year, but the vehicle raked in only 10 per cent of the company's total sales, against some 40 per cent a decade ago.

Hero Motors MD Pankaj Munjal remains optimistic. "Mopeds still have life. In India, cycles sell close to 15 million a year. These are potential buyers for mopeds."

He, however, does not seem to be succeeding in catalysing the migration. Hero Motors' subsidiary, Majestic Auto, sold 32,679 mopeds in 2004-05, a decline of 5 per cent from the previous year.

Srinivasan does not believe in the cycle-to-moped story. "We are comparing a product that is sold at Rs 2,000 (cycles) with one sold at Rs 15,000. Moreover, a moped has a running cost (petrol), which a cycle does not."