Deregulation sets off race among scooter makers

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GMI

Large scooters appear set to replace motorcycles as the mainstay product at motorcycle manufacturers.

The 250cc scooters are coveted by young riders for being stylish and for allowing comfortable tandem riding thanks to their large seats.

Two deregulatory steps to go into effect this year are likely to add to their popularity.

In April, the government plans to lift a ban on pillion riding on expressways. In June, first-time riders will be given the option to obtain a new license for the operation of bikes with automatic transmission only, sparing the need to learn how to operate a clutch and gearshift.

Almost all scooters are automatics.

Yamaha Motor Co., which brought large scooters onto center stage in 1995 with the introduction of the Majesty, will launch a new 250cc model in April, only a year after marketing the Grand Majesty with a new engine.

The Maxam is designed with tandem riders in mind. The passenger seat is only 10 centimeters higher than the driver's seat, down by 7 cm from previous models, to ensure driving stability in tandem riding.

The modifications are aimed at countering intensifying challenges from rivals such as Honda Motor Co., which last year outsold Yamaha, according to Yamaha's senior managing director, Tsuneji Togami.

``We are proud to be both a pioneer in this sector and the top manufacturer,'' he said.

In January, Honda introduced the Fusion SE scooter, which features a distinctly pointed front fender, top-quality upholstery and a classy appearance.

Suzuki Motor Corp. introduced the Skywave 250 SS scooters in January. Ample use of chrome gives the scooter a glitzy appearance.

As overall motorcycle sales have been on the decline domestically, growing sales of large scooters have taken on greater significance for manufacturers.

Scooters with engine displacements between 126cc and 250cc sold 97,000 units in 2004, up 10.5 percent from a year earlier, while overall motorcycle sales declined 7.9 percent to 700,000 units during the same period.

Overall motorcycle sales now stand at a little over 20 percent of their peak of 3.29 million units in 1982.

The 2004 sales also represent the second worst figure on record, following 490,000 units sold in 1958.

Under the circumstances, manufacturers are heartened by the popularity of the large scooters, whose owners are exempt from mandatory motor vehicle inspections as long as the displacement of the scooters is 250cc or less.

Large scooters also carry relatively fat profit margins. According to an official at one manufacturer, profits on the sales of one large scooter are ``between five and 10 times the amount on 50cc bikes.''(IHT/Asahi: March 17,2005)