This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Sozzi: China and India are LUSTING for Tiny Scooters, Here's Why

NEW YORK (TheStreet) -- So you live in suburban America and detest big cities due to their lack of clean air and hordes of people concentrated in a single area. On the weekend, a trip to Walmart (WMT - Get Report) (U.S. same-store sales have declined for five straight quarters, wow) or Target (TGT - Get Report) (the first quarter announced this week will be ugly) in a General Motors (GM - Get Report) car (hopefully this new Camaro Z28, it's a road beast) are the norm. Suffice it to say in this environment, passing a gas or electronic powered scooter on the highway would be comparable to actually investing in the next Facebook (FB - Get Report), rare.

However, jumping outside of your self-imposed bubble, scooter sales in the emerging markets of China and India are exploding. The two main reasons for this include:

  • Restrictions by governments on cars as a way to combat pollution. Winner: scooter companies, such as Vespa and Honda. Losers: General Motors and Ford (F - Get Report), although the used car market in China is pretty hot right now.
  • A wave of urbanization as emerging markets morph into developed countries but seek to maintain their export machines. Winner: scooters, with their tiny size and easy maneuverability.

Vespa sales increased 33% in India in the first quarter of 2014, outpacing a market that in my estimation is growing by 20%. Not too shabby!

The Stats that Explain the Emerging Market Scooter Boom


  • Urbanization in Asia/Pacific is expected to grow to 55% by 2015, bringing with it increased pollution and road congestion.
  • The electronic scooter market is projected to grow to 103 million units sold by 2018 from 12 million in 2012.


  • Scooter sales are increasing about 20% per year.
  • From 2014 to 2020, scooter sales are outlined to increase at 2x the rate as traditional motorcycles.

-- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

At the time of publication, Sozzi held no position in the stocks mentioned.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
F $16.18 0.90%
FB $81.63 0.91%
GM $37.72 0.40%
TGT $78.06 0.44%
WMT $83.25 0.81%


DOW 18,147.95 +51.05 0.28%
S&P 500 2,101.34 +2.81 0.13%
NASDAQ 4,982.8960 +15.7550 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs