Bonanza for scooter industry: women in Tamil Nadu to get 50% state subsidy on scooters

It's a move which should help give a new fillip to two-wheeler sales in the country and particularly in the state of Tamil Nadu. On February 24, prime minister Narendra Modi launched the Amma Two-Wheeler Scheme, a Tamil Nadu-funded project first broached by the state's late chief minister J Jayalalithaa.

Yesterday, on her 70th birth anniversary, the prime minister launched this scheme under which the Tamil Nadu state gives 50 percent subsidy to women to buy a scooter. Modi said, "I am glad, today, to be able to launch one of her dream projects– the Amma Two-Wheeler Scheme. I am told, that on Amma's70 birth anniversary, 70 lakh plants will be planted across Tamil Nadu.These two initiatives will go a long way in the empowerment of women,and the protection of nature."

"When we empower the women in a family, we empower the entire house-hold.When we help with a woman's education, we ensure that the entire family is educated.When we facilitateher good health, we help keep the entire family healthy.When we secure her future, we secure the future of the entire home. We are working in this direction," added Modi.

Likely boost for scooter sales
For the domestic scooter industry, the Amma Two-Wheeler Scheme will give a further boost to overall numbers.

Scooterisation has taken firm grip in India and the segment is firing on all cylinders. In January 2018, 553,695 scooters were bought across the country, marking handsome year-on-year growth of 48.29 percent. This number also constitutes 33 percent of the total two-wheelers sold last month, which means one of every three two-wheelers sold is a scooter. And the pace of growth is only growing.

With a 50 percent subsidy on a scooter, women in Tamil Nadu can get a scooter at a wallet-friendly price. The top two best-selling scooters in the country are the Honda Activa and the TVS Jupiter. In Chennai, the Honda Activa 4G has an on-road price of Rs 60,625 while the TVS Jupiter costs Rs 62,390. Factoring in the Scheme's discount, both scooters will cost women a little above Rs 30,000, which is a steal.

With the Amma Two-Wheeler Scheme officially unveiled, expect all scooter manufacturers -- Honda, Hero MotoCorp, India Yamaha Motor, Piaggio Vehicles, Suzuki Motorcycles India and TVS Motor Co -- and their dealers to come up with special offers for women.

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