LML comeback with VESPA

Tempted by the recent revival of the scooter segment in the country, the beleaguered LML (Lohia Machines) has re-entered the domestic market after a hiatus of 14 months with its Vespa brand of geared scooters.

The Kanpur-based company launched its 150cc Vespa brands NV SPL and Select II this week with an on-road price of Rs 35,000 in New Delhi, traditionally its biggest market. The company used to sell around 1,000 units a month in New Delhi before it went out of production in February 2006.

LML has started operations with two dealers in New Delhi and is targeting sales of 500 units in the next few months. The lone player in the geared scooter segment, LML is keen to grab its old market, with scooter sales showing growth in the past few months. Scooter sales rose 17% during April-July 2007 to 3,44,006 units.

A senior LML executive said, We have had a good response till now. There have been substantial queries at our two dealers for both the variants, and a few have translated into sales. We expect to touch the sales target (of 500 units) in the coming festive season.