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Money > Business Headlines > Report May 5, 2001 |
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Kinetic not to introduce four-stroke scooter variantsBS Bureau Sulajja F Motwani, joint managing director of Kinetic Engineering group, on Friday ruled out the possibility of introducing four-stroke variants in its scooter range -- Kinetic DX, ZX and Kinetic Marvel -- stating that the bulkiness of the engine doesn't make the vehicle customer-friendly. Kinetic Engineering group and Kinetic Motor Company are part of the Rs 10 billion Kinetic Group. "To meet the stringent environment norms expected to come in force by 2003, we have to introduce four-stroke scooters. Our effort is to develop a four-stroke engine that would give mileage of 60 km per litre for competitive advantage." Talking to mediapersons at the launch of 'Kinetic Challenger', a 100-cc four-stroke motorcycle, she said the group's decision to enter the motorcycle segment, where margins were higher, was aimed at improving its profitability and turnover. The group is aiming for a combined turnover of Rs 15 billion during the current fiscal, including Rs 3 billion from motorcycle sales. Asked whether the company's late entry into the motorcycle segment would act as a disadvantage, she said, "Probably not, because the motorcycle segment was growing at this rate only in the past three years and also all the products offered by both the new and old players were new." It was only after acquiring controlling stake from its joint venture partner Honda Motor Company in 1998 that the group could enter the motorcycle segment. In the future the company has plans to launch six new bikes covering the economy, combination and performance segments, including the GF series in collaboration with Hyosung of Korea. YOU MAY ALSO WANT TO READ:
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