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gas scooters 100cc

February 9th, 2008 admin No comments

Indian two-wheeler market is increasingly becoming a price Warfield. All competitors and wants to win the title 'cheapest Round the World 'a customer became king.

But I often wonder if this price competition is good for the health industry. Not everyone eat their own margins in the quest for greater market share and continued expansion? And where to get it smaller players like LML (going through some very difficult times like now), Kinetic (good scooters, disputed area networks, tried for motorcycles) and even the Yamaha and TVS? I am not even talk about it, Hero Motors.

Man as Hero Honda and Bajaj Auto can shake his hand suppliers to deliver parts cheaper, which I am sure that contractors are not bothered by the volume that these two guys offer. Both Munjal and Bajaj family are typical also in the way aid to run their brothers, cousins, in-laws, etc., etc. So, Bajaj Auto, you can always ask the cheaper rates from Varroc or Auragabad Electricals Hero Honda, while you do the same with MAC or Munjal Showa and Omax Auto. But what happens to LML (still makes many of its components, a very archaic), Kinetic (mostly independent contractors), TVS (Sundram group of suppliers, who like to act independently, but very professional is the best way forward?), Yamaha (independent contractor), or newcomers, such as Suzuki (will buy components from anyone other than the Munjal family or company Sundram)? Without the volume, one is not able to obtain the best prices.

Without the best component prices, the price of the final product increases. But then you have to fight Bajaj Auto. That reduces sales price bike. Then margins nosedive!
It seems that this vicious circle to me:

Low

High component prices> High final price> still lower volumes> Low profitability or another way forward may be Low volumes> High component prices> Low end prices> compromise on margins> Low profitability. Even another way forward may be so low volume> Low component prices (I compromise on quality components)> Low price of the finished product> High volumes> Low reliability> Low customer satisfaction> Low volumes> Low profitability. So fat gets fatter, while the small get smaller and may eventually get wiped out.

the only way seems to be technical innovations which may give a low volumes company advantage over a large volume. Unfortunately, the low volumes of low profitability of means that you have substantial money to invest in research and development or in some cases, such as TVS, where research and development given priority, it is usually very quickly copies the opponent, because most of the research and development is a supplier driven. So Centers losing its technical advantage CT 100 very quickly. After all the battlefield is 100 cc bikes, not battle tanks.

Another way out of this vicious circle is by focusing on niches. Indian bicycle manufacturer until now focused on the street, only commuters. High market share shifts to low-margin, high number of games and smaller producers must get out of the rut to survive. Kinetic so you should not do Boss and TVS should not be putting its energy into, or even Star Center. Small companies should focus sing to 150cc + niches and experiment new bodywork. Performance and quality should be the marketing weapon rather than price.

Deepesh Rathore
Research Editor
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