Mopeds continue to thrive even as twowheeler market growth slows

MUMBAI: Kinetic’s 50 cc Luna model, which became synonymous with the moped category in the 1980s, has long faded into oblivion. But mopeds, as a category, continue to be popular years after the Chal Meri Luna TV advertising campaign was last aired.

The humble moped continues to provide affordable mobility to thousands of people, especially in semi-urban and rural India. In current times, TVS XL model has assumed the leadership mantle in the category. It’s commonly referred as ‘Bikki’, ‘Luna’ and ‘Heavy weight’ in parts of UP — one of the biggest markets for the low-cost, low-speed two-wheelers.

In the year ended March 31, moped sales zoomed 23% to 890,367 units from a year earlier, according to data compiled by Society of Indian Automobile Manufacturer (Siam). The fastest sales growth in seven years came on the back of the launch of a new moped with four-stroke 100cc engine, said a TVS dealer, who declined to be identified. This was in a year when the broader twowheeler market expanded by a mere 4% from last year.

The popularity of mopeds defies the prevailing trend in India, which has transformed into a multi-brand, multiproduct market where highspeed performance bikes and gearless scooters have emerged as hot favourites.

So what makes the moped click? Besides the TVS XL’s affordable price, (₹35,000, ex-showroom, Maharashtra), the vehicle’s ability to carry light loads makes it popular with small businessmen, said a Navi Mumbai dealer of TVS citing instance of vegetable traders who use the moped to travel to and from APMC (the wholesale market for agriculture produce) in Vashi.

A TVS spokesperson declined to comment citing the “silent period” ahead of TVS’ earnings announcement later this month.

Less is more, said a former executive at TVS Motor, also declining to identified. “The fundamental of any good brand is consistency and least amount of tinkering,” he said pointing out that the XL still retains the three-decade old look. The only change is a bigger engine with the four-stroke technology.

For TVS, the XL has been an old workhorse, a breadwinner, he said, pointing out that it has kept the company going even during tough times when sales of other models were not picking up. The company decided to be consistent in its approach and kept selling the model without making too many changes even when others like Kinetic and Hero Cycles which sold the Luna and Hero Puch, respectively, exited the segment, he said.

“They (TVS) have been reinventing the wheel and have a product in every segment and sub-segment and the approach has worked well for them,” said Abdul Majeed, head of automotive practice at consulting PwC.