Two wheeler majors cut prices

NEW DELHI, MARCH 3. Following the excise duty relief announced in the Union Budget 2001-02, major two-wheeler manufacturers have decided to pass on the full benefit to customers by reducing the price of their scooters and motorcycles.

TVS-Suzuki today announced a Rs. 2,000 to Rs. 3,475 reduction in its motorcycle prices.

It has also slashed scooter prices by up to Rs. 2,000.

The company reported a 14.1 per cent drop in its February sales at 63,652 units over 74,114 units sold in the same month of 2000.

It included 9,355 scooters, 24,969 motorcycles and 29,328 mopeds, a company statement said here. Sales were also lower by 11 per cent compared to 71,536 vehicles sold in January 2001.

Cumulative sales (April-February 2000-01) increased by 5.7 per cent to 7.97 lakh units against 7.53 lakh vehicles sold in the year-ago period.

"We have decided to pass on the full benefit of the excise reduction to our customers by reducing the price of our motorcycles ranging from Rs. 2,000 to Rs. 3,475," the company President, Mr. C. P. Raman, said.

He said motorcycle sales have grown by 9 per cent in the current fiscal and accounted for 40 per cent of total volumes. "Further our scooters have shown an impressive growth of 16 per cent over last year," Mr. Raman said.

TVS-Suzuki is a joint venture between the Chennai-based TVS group and Suzuki Motor Corp. of Japan.

LML

LML has slashed its scooter and motorcycles prices by Rs. 1,929 to Rs. 3,187.

A company spokesperson told PTI that ex-showroom (Delhi) prices of the 'Select' and 'NV' scooter models have been reduced by Rs. 2,918 and Rs. 1,929 respectively.

Subsequently, the two models would be now be sold for Rs. 34,113 and Rs. 32,682 respectively.

Prices of LML's recently introduced motorcycles 'Energy' and 'Adreno' have also been cut between Rs. 2,697 and Rs. 3,187 respectively.

``We have decided to pass on the entire excise duty cut to the consumers," the spokesperson said. LML reported a massive 65.4 per cent fall in scooter sales at 7,815 units in February over 22,615 units sold in the same month last year.

The scooter sales were also down by 46.6 per cent as against 11,457 units sold in January, 2001. Motorcycles' sales, which were launched nationwide on November 2000, stood at 6,476 units in February, down 32 per cent over 9,499 units sold in January, 2001.

Cumulative scooter sales (April-February 2001-02) were also down by 39.6 per cent at 1.57 lakh units compared to 2.61 lakh units sold in the year-ago period.

Kinetic Motor

Two-wheeler maker Kinetic Motor Company today slashed prices of its scooter and motorcycle models between Rs. 1,200 to Rs. 2,000 with immediate effect.

Prices of various models, including the new Kinetic Challenger motorcycle, Kinetic AX, DX, ZX scooters and the new Kinetic Marvel scooter have been reduced on the basis of the eight per cent excise duty benefit proposed in the budget.

``We are very delighted about this change in the market. I think the excise reduction would definitely boost sales of our scooter and motorcycle range. Our scooters are of latest and best technology. With lower pricing, they will attract a wider customer base as they will offer a higher value for money,'' Kinetic Motor Company director Ms. Sulajja Firodia Motwani said in a statement here.

Hero Honda

Hero Honda Motors effected a Rs. 1,740-3,000 price cut and predicted that it would exceed its Rs. 3,000 crores turnover target for this fiscal.

``We have reduced the price of the 100cc 'Splendor' motorcycle model by Rs. 2,340, the 156cc 'CBZ' model by Rs. 3,000, 'CD-100' by Rs. 2,100 and the `Street Smart' by Rs. 1,740,'' Vice- President (Finance), Mr. Ravi Sud, told PTI here.

Hero Honda reported a 28.7 per cent rise in its February sales at 87,614 motorcycles over 68,043 units in the same month last year.

Sales were, however, lower by three per cent compared to 90,371 units sold in Janaury 2001. Cumulative sales (April-February 2000-01) have increased by 37.6 per cent to 9.32 lakh units from 6.77 lakh units sold in the year-ago period.

``We will be selling about 1.3 million motorcycles in this fiscal as against our target of one million units," Mr. Sud said. He said Hero Honda would achieve an operational income of Rs. 3,175 crores in 2000-01 and a profit before tax of Rs. 390-400 crores in this fiscal.

- PTI

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