There was a time when geared scooters dominated the Indian two-wheeler market. However, with the advent of fuel-efficient and easy-to-ride motorcycles, the geared scooter (and indeed the scooters segment itself) was headed towards oblivion. The introduction of the gearless version redeemed the situation and revived the market for scooters. These scooters were lighter in weight and easier to handle; they could be started with an electric push-button switch and did not need changing of gears. Though not initially planned as such, it was found that a growing number of women riders took to gearless scooters. Marketers were quick to respond by offering products and services to meet their needs. A number of scooters such as Scooty Pep+, Pleasure, Flyte, etc., are now aggressively focusing on the female segment and are adopting innovative marketing and advertising strategies to attract them.

Till the early 1980s, scooters (i.e., geared scooters) were the dominant category of two-wheelers sold in the Indian market. At that time, demand far exceeded the supply and there was a waiting period of two to three years for the delivery of popular scooter models. Then, a two-wheeler generally meant a Bajaj Chetak or an LML Vespa. While there were motorcycle brands like Rajdoot, Royal Enfield and Yezdi, they were expensive to buy and maintain. They remained style statement products bought by a select few, and were more often seen being used by the police and the army. Scooters formed the main option for the average middle class individual looking for a vehicle for personal transport. The Maruti 800 entered the market only in December 1983, and a small car was only a distant dream for most Indians back then.

Around this time, a slew of fuel efficient 100 cc motorcycles entered the Indian market - backed by Japanese technology. These were TVS-Suzuki, Escorts-Yamaha and Hero-Honda. Kawasaki-Bajaj followed a little later. A new range of two-wheelers that were easier to ride and maintain, and also less expensive to use (due to increased fuel efficiency) became available, and many prospective two-wheeler buyers, particularly the youth, began to prefer motorcycles to scooters.

Consumer preference had shifted in favor of motorbikes and though this was partly due to lower operating cost, it was also due to the fact that motorcycles were actually being seen as better vehicles than the heavy and unwieldy geared scooters. As a result, the market size of scooters category began declining and was overtaken in 1998 by motorcycles.

The sales tax rationalization implemented by the 2001 budget resulted in scooters becoming comparatively more expensive. In addition, the government began to enforce strict emission norms, which forced scooter manufacturers to either install catalytic converters in existing vehicles or to go in for four-stroke engines to reduce pollution, thus adding to the cost of the scooters. The reduced price difference between motor cycles and scooters made the latter even less attractive. Further, the aggressive positioning and marketing of motorcycles made the scooters appear as old-fashioned, not practical (not as fuel efficient as motorcycles) and obsolete.

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