Kinetic Motor houses the entire two-wheeler product business of the Kinetic Group. It has been seeing losses due to the inherited slow-moving motorcycle business, and the absence of a comprehensive scooter portfolio.

However, that could well be a thing of the past with the launch of the 125cc gearless scooter "Flyte", which is expected to see positive sales and much-needed volumes.

Managing director Sulajja Firodia Motwani estimates sales of 8,000 units per month by June 2008. Flyte is the latest addition to Kinetic''s scooter portfolio, which has a high-end gearless scooter ''Blaze'' as part of its partnership with Italjet. For the near future, at least one more scooter on the Flyte platform and two electric scooters are planned for the Indian market.

Flyte will compete with existing variomatic (gearless) scooters such as Hero Honda''s Pleasure, Honda''s Activa, Bajaj''s Kristal and Suzuki''s Access.

According to Motwani, Flyte has several unique features such as front fuelling, 22-litre dual storage space, and a secondary air injection engine. She acknowledged Kinetic''s marginal presence in the motorcycle segment where Kinetic sees sales of around 1,000 units each month, and said the company plans to focus its effort and investments focus is on the scooter business.

Explaining her focus on the scooter business, Motwani cited numbers, saying that according to estimates from ICRA and others agencies, the variomatic scooter market has seen growth at 23 per cent over the past six months, while bike sales have witnessed declines in double digits. In the future, variomatic scooter sales are expected to retain a faster growth clip at 14 per cent annually.

According to Motwani, the global trend shows more rural folk opting for bikes, whereas urban buyers want gearless scooters.

The Kinetic Group has decided to invest Rs80 crore in capacity expansion and working capital. Sister concern Kinetic Engineering is also looking at expanding, having bagged new projects for supplying components and engine transmissions.

Kinetic Engineering is one of two suppliers of gear boxes to the Tata Motors'' Rs 1 lakh car project. Capacities are being built at both Ahmednagar and Singur to fulfill this order.

Motwani estimates scooter business, Kinetic Motors, to break even next year.