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Two-Wheel Obsession
By Rachel Koning Beals
Last Update: 7:47 PM ET Jul 31, 2006
CHICAGO (MarketWatch) -- Scooters are no longer resigned to the courier business, college towns and replays of Gregory Peck and Audrey Hepburn's Vespa-enchanted "Roman Holiday." And they're no longer foreign to U.S. buyers.
Domestic sales of these gas-saving two-wheelers have surged as budget- and environment-minded consumers look for relief from high pump prices and as more-appealing models come on the market. Demand isn't expected to stall anytime soon, industry observers say.
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U.S. sales for just the leading manufacturers Honda, Yamaha and Aprilia of scooters with engine sizes of 150cc or less (generally considered midsize to small and not usually reaching sustainable highway speeds) totaled about 16,000 in 1999. Sales from this group had jumped some 200%, to 48,000, by 2004, and they continue to rise, according to industry stats from Robert Pandya, spokesman for the Cycle World International Motorcycle Shows.
These figures include only those models endorsed by the Motorcycle Industry Council as being up to current industry standards and EPA regulations. Toss in older bikes and those imported from smaller, mostly Chinese, Taiwanese and Korean makers not typically manufactured to meet U.S. environmental rules, and the 48,000 figure nearly doubles, Pandya said.
Higher-end Vespa has seen a rebirth in U.S. popularity, returning to this market in 2000. Its scooters are once again being designed to EPA standards, but with new models giving a nostalgic nod to the brand's traditional styling. Its Italian parent Piaggio (IT:307326: news, chart, profile) went public to much fanfare in early July. The company has U.S. dealerships in some 100 locations, over half of which have opened just since January 2005.
Energy efficiency, relatively low entry costs -- some new midsize scooters start near $1,000 -- and parking flexibility are frequent motivators behind purchases of new scooters and of the growing crop of used machines being refurbished from fix-it shops and flea markets. But for many buyers, the cache that comes with buzzing around the neighborhood astride a sleek mass of plastic and chrome is just as enticing.
"People realize you don't need a three-ton vehicle to run down to the corner store. So, yes, it's about practicality. But really, it's about fun," Pandya said.
Suburban Chicago family man and futures-industry executive Greg Sabatello is the proud papa of a four-stroke 200cc Vespa Granturismo, which he bought a few years ago. Sabatello reserves his scooter use mostly for the weekends, but finds he seldom gets behind the wheel on Saturdays and Sundays.
"I rarely drive a car; my son has taken over that. My entire family lives within blocks of each other and my kids' schools and sporting events are all close. You can't beat the convenience of the Vespa, particularly for errands," he said. "I can put the groceries under the seat and in the bubble on back."
From cult appeal to mainstream
Ridership for some goes beyond runs for milk and bread. The number of social clubs among scooter owners, including Vespa Club USA, is up nationwide and can be found in or around most larger U.S. cities. Washington riders, for one, hosted their second annual rally called Scootergate in early June.
National organization Moped Army, a group that promotes finding and restoring mostly 1970s and 1980s mopeds and updating them to current environmental code, has been ahead of the latest scooter craze. The organization was created in the late 1990s to promote more environmentally friendly and fun commuting, says Annie Tsui, co-founder of New York's branch, called Mission 23.
Scooter club membership isn't exclusive to twenty- and thirty-something urbanites. Suburban boomers and seniors are joining the group rides and fund-raisers as well, swapping scooter stories and out-of-stock parts for their vintage bikes.
Pandya sees the biggest scope for industry growth in more-sophisticated scooter models offering larger engines. Already, there's a shift underway; small 50cc engines made up 74% of the scooter market in 2003, but that share had slipped to 66% just two years later. Bikes with engines of 250cc and above were just 5% of the market in 2003 and by 2005 had edged up to 6.75%.
80 miles to the gallon
Many Europeans and Asians may rely on their scooters as a primary mode of transport, but in the U.S. a scooter is still more likely to be an addition to a garage not a replacement for a car, said test editor Brian Moody, with auto-research site Edmunds.com, in Los Angeles.
And yet some American cars are gathering more dust these days as commuters are opting for two-wheel travel, enticed by a $6 tank fill-up, he said. Depending on the type, average scooters can get up to 80 miles to the gallon, but the technologically advanced models, one by Italian maker Aprilia, get 120 mpg.
Some cities have or are adding incentives to encourage drivers to leave their cars at home. Baltimore, for instance, is allowing the tiny triangular spaces typically found at the end of rows in most parking decks, off limits to cars, to be occupied by scooters and motorcycles. Some cities don't require a meter to be fed if a scooter or motorcycle is occupying the parking space. And, some condo developments are offering free scooter parking in addition to or in lieu of a paid space on the property, Pandya said.
The switch from a car is still a hard sell for many, particularly in parts of the country that don't enjoy year-round mild weather, Moody said.
"While growing in popularity, scooters are only marginally embraced in the U.S. where millions of individuals drive cars in situations where motor scooters would be perfectly appropriate and convenient," Paolo Timoni, CEO of Piaggio Group Americas, said earlier this year.
A survey conducted for Piaggio found that 33% of Americans would be likely to use a scooter to reduce emissions and 35% would be likely to use a scooter to save $25 a week on gasoline.
Priced to move
The median price for a new scooter is about $2,000. Some new models, so-called throw-away bikes, can be as low as $500. At the high end, those scooters closest to their motorcycle brethren, can be upwards of $10,000.
Count on about $150 to register a scooter at purchase, although that varies by state. Pandya said $50 to $100 will buy a better-quality helmet. Helmet laws, as with motorcycles, differ by state.
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