LML Reuntied with Geared Scooters

LML gave up the geared scooters for motorcycles saying that the Indian market had changed, but it looks like they have realized the error of their ways. Interesting that the scooter market has grown and motorcycles proved less lucrative.

From the Economic Times:

NEW DELHI: The beleaguered two wheeler company LML has launched its second geared scooter in the domestic market, on the back of a revival of
demand in domestic scooter market. LML has introduced a 4-stroke version of its NV brand of scooters in select market of Delhi and Ghaziabad.

Available in two variants, LML claims the 150 cc scooter delivers a fuel efficiency of 55 km/litre. It is available at an ex-showroom price of Rs 39,897 for the base version and Rs 40,800 for the deluxe variant in Delhi.

Kanpur-based LML re-entered the domestic market with its Vespa brand of geared scooters in April 2007 after an 18-month hiatus when it had to stop production due to fund crunch and labour problems.

LML currently has a limited presence in the domestic market and sells 1,500 units of its two-stroke scooter under the Vespa brand in Delhi, parts of Punjab and Haryana, every month. Operating under the Board for Industrial and Financial Reconstruction (BIFR), it is looking to expand its market to Uttar Pradesh, Bihar and Assam.

Bulk of its total production of 5,000 units per month are exported to Italy, UK, France, Nigeria, Sudan, Japan, Australia, South Korea and Egypt, under the Stella brand. LML has an installed capacity of 300,000 scooters and 240,000 motorcycles. The company has totally stopped motorcycle production.

The scooter market grew 9% to 11.45 lakh units last fiscal outperforming the two wheeler market which posted a marginally lower growth of 2.6% in the same period.