TIMES NEWS NETWORK[ TUESDAY, FEBRUARY 08, 2005 12:38:37 AM]
MUMBAI: Once hugely popular, mopeds and step-thrus have now almost become extinct. Thanks to motorcycles sales, which have been growing at 27% annually over the past four years, moped sales have shown a negative trend, and except in a few states like Tamil Nadu, have completely disappeared.
Players like TVS have indicated that it does not make economic sense to invest in mopeds. Bajaj Auto’s 75cc step-thru has rapidly lost ground for similar reasons. This is not surprising, considering that the management has shifted focus from this market, say sources.
Meanwhile, operating margins of two-wheeler majors are under pressure on account of higher material cost and increased promotional expenses. With the new emission norms applicable by April