New Delhi, Nov 10: The Rs 1,000-crore Kinetic Group is revving up for the scheduled launch of the 125-cc Hyosung and 100-cc Kinetic motorcycles in January, 2000. By the end of November 1999, Kinetic will launch a scheme for dealers called: ``Get Ready For Motorcycles''. Says Sulajja Motwani, joint managing director, Kinetic Motor Company Ltd: ``As we expand our portfolio from mopeds, scooterettes, scooters and step-thrus, to motorcycles, there will be qualitative enhancements and upgradations at Kinetic dealerships.''Under the Get Ready scheme, Kinetic has drawn out a dealership model for each town, where depending on the motorcycle sales potential, it will stipulate capital infusions into the existing distribution network. The working capital requirements may vary from Rs 5 lakh in a small town to over Rs 25 lakh in metros.
For instance, in Mumbai, which sells around 2,500 bikes a month and where the company leads the pack in scooter sales, Kinetic expects the potential for the Kinetic bikes to be between 200 and 300 units a month. ``A dealer selling 100 bikes is expected to bring a working capital of Rs 35-Rs 40 lakh,'' says Motwani. Beginning with the top 100 towns, which account for nearly 65 per cent of motorcycle sales, through a network of top 150 dealerships, Kinetic will gradually move down to rural markets, including villages (of about 500 people) in phase two of the expansion. Currently, rural markets account for around 50 per cent of over all motorcycle sales.
For the indigenously developed 100-cc bike (in technical assistance with WGL), Kinetic expects 30 per cent of sales to come from rural markets while the 125-cc Hyosung (technical collaborator: Hyosung) would be largely a urban product for the upscale and the youth segment. Kinetic expects the motorcycle sales, which account for around 40 per cent of two-wheeler sales now, to be around 50 per cent in three years. Says Motwani, ``The motorcycle sales will be substantially driven by growth in the rural markets.''
Premium Pavillion: Kinetic is also adding a third layer to its existing dealership model. Hitherto, it had two kinds of dealers: `select dealers' who have limited capability and therefore do not offer the full Kinetic range; and `Pavillion dealers', who offer the complete range of Kinetic two-wheelers. Now, Kinetic is adding a third category of dealers-Premium Pavillion dealers, who have the wherewithal for high-investment dealerships which offer the customer an upmarket ambience and carry the full range of Kinetic products. ``Nearly 60 dealerships will be included in Premium Pavillion in the next six months,'' says Motwani. ``Presently, we are working on the incentive package for dealers.''
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.