Even as the top two-wheeler manufacturers - Hero Honda, TVS Motors and Bajaj Auto - rode the crest of an euphoric market on Friday, companies such as Majestic Auto and Scooters India remained laggards. Apart from the broad market high, analysts attribute the buoyancy of the former to the fact that these companies saw a 26.4-per cent rise in volume YoY in May 06 and a 22.6-per cent rise year to date.

Unlike the other two-wheeler manufacturers, the outlook for Majestic Auto and Scooters India is not so positive. Analysts maintain that with the moped market not so vibrant and stiff competition from TVS - which has garnered about 85-90 per cent market share in this segment - Majestic Auto has seen a dip in volumes. Scooters India, touted as a divestment candidate in the past, is said to be no longer a mainstream player. The company reportedly is in need of a complete shakedown. Majestic Auto ended at Rs 43.50, down 3.76 per cent, on the BSE while Scooters India closed at Rs 21.10, down 3.43 per cent.

http://www.thehindubusinessline.com/2006/06/10/stories/2006061004421500.htm