Posted in Scooter Brands - Other Scooter Brands
The storied Bajaj scooter line of India is coming to an end.
The factory will close later this month, a casualty not of the global recession, but of increasing prosperity in India.
"People have more money to spend today," Pradeep Tyagi, a used cycle dealer, told the Associated Press. "No one wants to spend that money on a scooter."
Although more than a third of the population lives on less than $1 a day, Western-style advertising and easy credit have led to an increasing consumerism. And the middle class is estimated to be 50 million strong.
The humble scooter is relegated to the entry level for people who aspire to owning motorcycles or, even better, cars. A low-end used motorcycle costs $350; a decent used scooter costs less than half that.
Bajaj had a 30-year history of ushering Indians into the modern era. At one point, according to AP, the best-selling Bajaj model, the Chetak, was selling 100,000 units per month. The waiting list could last a decade and desperate buyers would pay huge premiums above the list price to get one. For a time, Bajaj was the world's largest scooter manufacturer.
Now, as the population turns to more powerful machines, so is the OEM.
While the latest scooter, the Kristal, sells for about $750, the popular Pulsar motorcycle costs nearly $2,000. Still, motorcycle sales reached almost 220,000 in December, an 86 percent year-on-year increase.
Despite the shifting consumer preference, Bajaj scooters won’t disappear soon. Their reputation for dependability and being easy to repair, coupled with the lower-income masses of Indians, ensure they will be on the road for years to come.
Posted by Holly Wagner at dealernews.com
