"The idea is to have an adequate price differential between the scooterette and the motorcycle segments. Otherwise, with a small differential of Rs 3,000-4,000 the consumer would gravitate to the motorcycle," said Kinetic Engineering joint managing director Sulajja Firodia Motwani.
The scooterette category is mainly in the mini-metros. Kinetic had launched in March 2001 an upgraded version of the Style priced at Rs 26,337 (ex-showroom Maharashtra). But with the entry level motorcycle segment hotting up and prices falling, the scooterette segment has taken a hit.
Kinetic has also launched the 115cc Nova to take on Honda Activa and Bajaj Saffire. "We are expecting to reach volumes of 8,000 units per month by September and are targeting to sell 60,000 units in 02-03," Ms Motwani said.
Nova is a auto-geared scooter with a 60 kmph mileage and is priced at Rs 34,777 (ex-showroom Maharashtra). The company has already sold around 4,000 units of the Nova in the first two months in six cities. Interestingly, the company has positioned the Nova as a scooter for the urban male.
Kinetic has also launched an upgraded version of its Kinetic ZX Zoom at Rs 1,500 lower than the Nova. However, Ms Firodia admitted that there would be some amount of cannibalisation between the two models.