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The march of Samurais

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For a very long time, the two-wheeler market - confined mostly to motorcycles - in India was in the hands of two or three players, Bullet, Jawa and Rajdoot. The scooter market was heralded by Lambretta and Vespa. But motorcycle was still the favoured vehicle for a long time. 

Pioneering efforts

It was in the seventies that Bajaj started rolling out its scooters from Pune with a captivating slogan 'Hamara Bajaj' and soon the sale of scooters saw an upsurge. For a long time they were able to play it from the 'sellers' market.' Whoever needs a Bajaj scooter must pay an advance and register with them and wait for about a year, before fortune favoured them with the blessed two-wheeler. In fact there was an inner circle that registered with the manufacturers and sold the two-wheeler as and when it was allotted at a premium.

This phenomenal success of Bajaj naturally tempted other players and soon companies like Scooters India, Hero etc. threw themselves in the fray and vied with each other to woe the buyer. With the advent of Luna and Hero Majestic, there was an addition to the two-wheeler market - the moped.

The market was for a very long time in the hands of North Indian players. It was then the turn of Sundarm Ayyangar of Thirukkaraungudi to set the southern foot into the field. TVS group of companies, which was until then concentrating in the manufacture and sale of automotive components, for the first time set its eye on manufacturing mopeds. 'Namba ooru vandi,' is the endearing catch phrase that set the wheels of TVS 50 rolling, weakening the market share that Hero enjoyed until then. It soon became a better alternative for a bicycle and a very large section of the middle and lower-middle income group opted for it.

The entry of Japs

The readiness with which Indian buyers took to two-wheelers of almost all kinds set the Japanese thinking. They saw the big piece of cake in India - second only to China - and understood the potential that it offered. It was thus the Samurais started their march towards India.

Honda joined hands with Hero and Suzuki wooed Maruti. The red carpet that the Indian business spread for the Japanese made it easy for four of their automobile giants to join in collaboration with Indian manufacturers. Suzuki joined with TVS to provide a 'powerful, attractive, youthful' machine that diverted the Indian youth from the scooter market. TVS Suzuki soon became the favourite among Indian youth.

That success paved the way for Honda and Hero and for Yamaha who in collaboration join with Escorts, to fill the market with a new breed of motorcycles that set the market on fire, necessitating Bajaj to join hands with Kawasaki to have its share of the pie. Suzuki was rolling out its cars with Maruti and two-wheelers with TVS. Honda was manufacturing motorcycles with Hero and scooters in collaboration with Kinetic Engineering. They were with different manufacturers at the same time in different segments.

The honeymoon is over

In the 90s the market for two-wheelers touched the peak and slowly the Indian companies were becoming a tool in the hands of the Samurais. They realised that the Indian companies were completely dependent on them for technology. That gave them an upper hand. They were not able to live with the fact that the Indian manufacturers continued to sell their own brands, though they had entered into MoUs with more than one Indian manufacturer. This generated considerable amount of friction that first showed up in the cessation of relations between Kinetic and Honda, causing a fall in the value of shares of Kinetic. Kinetic could not operate successfully after it moved away from Honda.

And then came the divorce between TVS and Suzuki. Observers say that Suzuki was in no mood to continue its relations with TVS. They sold their holdings for a mere Rs.9 crores, at Rs.15/- a share. Experts feel that the introduction of TVS Scooty and its success sparked this separation.

The rumour that is doing the rounds now is that Hero and Honda are the next couple who are getting ready for their divorce. Considering the fact that Suzuki and Kawasaki have joined hands at the international level, this kind of divorce would cause difficulties for the Indian players to enter the international arena.

Three of the four Japanese giants - Suzuki, Yamaha, Kawasaki and Honda - have washed their hands on Indian manufacturers during the past four months. Yamaha has purchased its Indian partner, Escorts, during last June. And it is also noteworthy that Honda is establishing its own plant to capture the scooter market.

'These Japanese giants are not unlike the American middleclass couple. They get into wedlock too soon enjoy a short honeymoon and rush to the Court for divorce, in search of a new partner,' said an observer with a wink.

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