China without Google: ‘a lose-lose scenario’ (tech)
BEIJING – China without Google — a prospect that looks increasingly likely — could mean no more maps on mobile phones. A free music service that has helped to fight piracy might be in jeopardy. China’s fledgling Web outfits would face less pressure to improve, eroding their ability to one day compete abroad. The extent of a possible Google Inc . pullout from China in its dispute with the communist government over censorship and hacking is unclear. But on top of a local search site that Google says it may close, services that might be affected range from advertising support for Chinese companies to online entertainment. “If Google leaves, it’s a lose-lose scenario, instead of Google loses and others gain,” said Edward Yu, president of Analysys International, a Beijing research firm. Chinese news reports say Google is on the verge of shutting its China site, Google.cn , and has stopped censoring results. A Google spokesman, Scott Rubin, denied censorship had stopped and would not confirm whether Google.cn might close. “We have not changed our operations in China,” Rubin said by phone from Google’s headquarters in Mountain View, California. CEO Eric Schmidt said last week something would happen soon, and Rubin said he had no further details. Google says it is in talks with Beijing following its Jan. 12 announcement that it no longer wants to comply with Beijing’s extensive Web controls. But China’s industry minister insisted Friday the company must obey Chinese law , which appears to leave few options other than closing Google.cn, which has about 35 percent of China’s search market. Such a step could have repercussions for major Chinese companies as well as local Web surfers. It would deliver a windfall to local rival Baidu Inc ., China’s major search engine, with 60 percent of the market. But other companies rely on Google for search, maps and other services and might be forced to find alternatives. China Mobile Ltd ., the world’s biggest phone company by subscribers, with 527 million accounts, uses Google for mobile search and maps. Baidu offers mobile search but China Mobile passed up a partnership with it earlier after they failed to agree on terms, according to industry analysts . Millions of mobile customers might lose access to Google’s Chinese-language map service. A key issue is whether Beijing, angry and embarrassed by Google’s public defiance, would allow the company to continue running other operations, including advertising and a fledgling mobile phone businesses in China if Google.cn closes. China promotes Internet use for business and education but bars access to sites run by human rights and political activists and some news outlets. Officials who defend China’s controls by pointing to countries that bar content such as child pornography are stung that Google has drawn attention to how much more pervasive Chinese limits are. Chinese Web surfers are blocked from seeing Facebook , YouTube, Twitter and major blog-hosting services abroad and a Google pullout would leave them increasingly isolated. Google hopes to keep operating its Beijing research and development center, advertising sales offices and mobile phone business , according to a person familiar with the company’s thinking. But the person said the company won’t do that if it believes its decision to stop censoring search results will jeopardize employees in China. Industry analysts estimate Google has a work force of 700 in China. The government says Chinese mobile phone carriers will be allowed to use Google’s Android operating system but there has been no word on whether efforts to sell its own phones in China might be affected. Google postponed the launch of two phones with a major Chinese carrier due to the dispute. Uncertainty also surrounds Google’s China music portal, a free, advertising-supported service launched last year in partnership with four global music companies and 14 independent labels. Industry analysts say it has helped to undercut China’s rampant music piracy by offering an alternative to unlicensed copying. The music service is run by Top100.cn , a company part-owned by Google, but can be accessed only through Google.cn . Employees at Top100.cn referred questions to executives who did not immediately answer phone calls. “Without that, are we back to, `Piracy wins’?” said Duncan Clark, managing director of BDA China Ltd., a technology market research firm. “Piracy thrives because of censorship.” The biggest impact of a Google departure could lie behind the scenes, where Chinese companies, many of them small entrepreneurs, rely on its AdWords advertising service, Gmail e-mail and documents services. Those might be disrupted if Beijing turns up Internet filters to block access to Google’s sites abroad. Its U.S. site has a Chinese-language search engine but is already inaccessible due to government filters. In an uncomfortable irony for Beijing, Google might suffer little commercial loss from a pullout while China’s own companies are hurt. The bulk of Google’s estimated $300 million in 2009 revenues in China came from export-oriented companies that would need to keep advertising on its sites abroad even if Google.cn closes, according to Yu. “We believe the majority of revenue would still be kept on, with keyword purchases listed on Google.com instead of Google.cn,” he said. The loss of competitive pressure from Google also might slow Chinese development in search and other Internet services, Yu said. “This is definitely a bad thing for Chinese companies that want to go abroad in the future,” he said. The industry minister, Li Yizhong, said Friday that China’s Internet industry would develop without Google. But even some Chinese industry leaders who normally toe the government line in public are warning that controls on Internet companies and media are handicapping their growth. Beijing has steadily tightened controls over Internet content and foreign investment in the industry. Video sharing sites must have state-owned media outlets as partners. People in the industry say it is getting harder to register privately financed sites. “Without full and fair market competition, there will be no quality, no excellence, no employment opportunities, no stability and no real rise of China,” said the chairman of major Chinese portal Sohu Inc., Charles Zhang, in a speech in February, according to a report on Sohu’s Web site. “How do we do this practically?” Zhang said. “The problem is complicated, but the fundamental point is to limit the power of the government.”
Google expects Android to ‘flourish’ in China: CFO (tech)
NEW YORK () – Google expects its Android mobile operating system to “flourish” in China , Google’s chief financial officer said Monday amid a two-month standoff with Beijing over Web censorship and cyberattacks. Asked during a Google “educational webcast” about the future of Android in China in light of the conflict over Google’s search engine, Google CFO Patrick Pichette said “the Android platform is available to everybody. “All the carriers, all the handset providers can actually use the Android platform,” Pichette said. “It’s an open source platform . “China is obviously another great market in which Android should flourish so we look forward to that,” he said. Google threatened in January to stop censoring its Chinese-language search engine and perhaps leave China altogether over what it said were cyberattacks aimed at its source code and the Gmail accounts of Chinese rights activists. China’s Minister of Industry and Information Technology Li Yizhong on Friday warned Google it would face “consequences” if it stopped filtering its search results on Google.cn . The Wall Street Journal reported Monday that Google appears increasingly likely to close down its Chinese-language search engine and may “take action within weeks.” It said Google and the Chinese authorities have been discussing the extent to which the Internet giant will be able to operate in China if it follows through on its pledge and stops censoring Web search results. “Hopes are fading that Google will be able to reach an agreement with China to remain in business there,” the newspaper said. A Google spokesman declined on Monday to comment to on the status of negotiations between the California company and the Chinese authorities.
Google sees mobile ad rates passing PC rates (tech)
SAN FRANCISCO () – Google Inc said that it expects the rates that companies pay for search ads on mobile phones could surpass the rates of its existing PC-based ad business thanks to the growing popularity of powerful smartphones. Google Engineering Vice President Vic Gundotra did not say when he expected the crossover in the so-called cost per click of its search ads to occur, during a webcast to analysts about the company’s mobile business on Monday. But he said that mobile ad rates have increased “dramatically” in recent years. And he noted that the number of Google searches on mobile phones have increased five-fold in the last two years. “We hope and believe that there’s even a chance that we could exceed desktop in the future,” Gundotra said in reference to the cost per click of mobile ads. He cited the availability of technology, such as the GPS data that can tell Google a phone user’s physical whereabouts, as helping the company create more “relevant” online ads. Google, the world’s No.1 Internet search engine with $23.7 billion in 2009 revenue, has stepped up its mobile efforts as consumers increasingly access the Web from smartphones like Apple Inc’s iPhone. Google offers its own Android operating system that handset manufacturers like Motorola Inc and HTC use in their devices, and in January, Google began selling the Nexus One phone directly on its Web site. In November, Google announced plans to acquire mobile advertising firm AdMob for $750 million, though the deal is currently facing regulatory review. The mobile briefing comes as Google is in a standoff with China , the world’s largest Internet market by users, over the future of its Internet search website in the country. Google has said it will no longer censor search results in China, a move that some analysts believe could mean the end of its Chinese language web site Google.cn . Asked what the search situation might mean for Google’s mobile plans in China, Google CFO Patrick Pichette said on the webcast on Monday that Android was an “open source” platform that’s available to everybody and that the company thought China represented “another great market in which Android should flourish.” (Reporting by Alexei Oreskovic; Editing by Bernard Orr)
China TechFaith posts jump in 4Q profit (tech)
NEW YORK – Chinese cell phone designer China TechFaith Wireless Communication Technology Ltd . said Monday it tripled its fourth-quarter profit, helped by a jump in revenue and a rise in value of derivative securities on its books. The company earned $3.1 million, or 7 cents per share, up from $824,000, or 2 cents per share, in the same quarter a year before. The latest quarter included a one-time gain of $1.8 million from the rising value of derivatives tied to a convertible bond sale the company made last year. Revenue increased 13 percent to $59.8 million. For all of 2009, China TechFaith earned $6.3 million, or 14 cents per share, down from $8 million, or 18 cents per share, the year before. Full-year revenue climbed 1 percent to $211.1 million from $208.9 million. For the current quarter, the company projected $60 million to $62 million in revenue. Shares of China TechFaith fell 21 cents, or 6.4 percent, to $3.05 in aftermarket activity. They earlier added a penny to close at $3.26. The stock has ranged from $1.14 to $3.93 over the past year.
Windows Phone 7 Development Uses Familiar Skills (NewsFactor)
Microsoft showed off its Windows Phone 7 Series development platform Monday at the MIX10 conference in Las Vegas. Among other things, the new platform promises to give developers and designers the ability to use established technologies such as Silverlight and the XNA Framework to build new mobile apps as well as deliver compelling user experiences across a broad set of devices, according to Microsoft Vice President Scott Guthrie. “As the browser, server, web and devices evolve, a focus on delivering consistently great user experiences has become paramount,” Guthrie said. “By extending our familiar platform technologies and tools to phones, Microsoft is delivering the premier application development experience across a variety of devices and form factors .” Code by Layout During the MIX10 keynote Monday, Microsoft demoed a new design and development work-flow tool that promises to streamline the creation process dramatically. Called Expression Blend 4 Beta, the tool incorporates a visual layout mechanism that in many instances will eliminate the need for writing code. The software giant also unveiled the release candidate for its next-generation Silverlight 4 platform, which is available for immediate download, together with a comprehensive package of free tools for the Windows Phone 7 Series platform. The package includes Microsoft Visual Studio 2010 Express for Windows 7 Phone, a Windows Phone 7 Series add-in for use with Visual Studio 2010 RC1, and a Windows Phone 7 Series Emulator for application testing. “We gave these tools out to a handful of partners about three weeks ago to see what they could build,” Guthrie told MIX10 attendees. “We are amazed as some of the apps that came back.” For example, Vertigo Software CEO Scott Stanfield showed off a new media app that will enable consumers to stream Netflix movies to their Windows 7 phones. “There’s a music and video hub that I can launch here and you can see the [movie] title I just watched along with all the other content important to me,” Stanfield said. Another new app designed for Graphic.ly — a community for purchasing and discussing comic books — will enable consumers to buy digital comics and view them on a Windows 7 laptop or carry them around in their pockets on a Windows 7 phone. The app includes a hardware-accelerated deep zoom that can deliver high-resolution imagery over low bandwidth. So whenever the user elects to pan in on a comic graphic, deep zoom is able to pull down the right resolution. Targeting Device-Specific Capabilities Microsoft Vice President Joe Belfiore showed developers and designers how they can take advantage of device-specific Windows Phone capabilities, such as camera and microphone support, mapping and location, and hardware-accelerated video with digital-rights management. “Windows Phone 7 Series brings together a rich application environment, powerful hardware, a fresh approach to software, and a smart new design,” Belfiore said. “It was designed to generate incredible opportunities for developers and designers to quickly and easily deliver compelling applications and games.” For example, a new Foursquare app developed for the new platform harnesses the power of Windows Phone’s built-in mapping and location capabilities to deliver social-networking on the fly. Moreover, a new Shazam music-identification app taps into the platform’s microphone input. All of Monday’s MIX10 developments were intended to show developers and designers how they can bring creations quickly to market via a revamped Windows Phone Marketplace, which supports the discoverability of games and apps, one-time credit-card purchases, and mobile operator billing. Additionally, developers will be able to cross-promote their creations through deep linking, and handset users will be able to try marketplace apps before buying, Microsoft said.
Saudi warns charity scams could fund terror (tech)
RIYADH () – Saudi Arabia warned its citizens on Monday to be wary of Internet and cellphone scams involving bogus charities that could be aimed at funding terror activities. “We have noticed lately that there are many announcements that come through mobile messages, through the Internet, through different media, announcing a bank account for people to donate to” for ostensibly legitimate purposes, interior ministry spokesman General Mansour al-Turki told . “The ministry of interior is very interested in this to make sure the money goes to legitimate causes,” Turki said. “We want to make sure this doesn’t find its way to terrorism activities.” The interior ministry said in a statement to the official SPA news agency that it would freeze any bank accounts pending investigation into their legitimacy and their receiving official authorisation. “If you allow people to collect money for charity, and you don’t take the steps to be sure the money will not be misused, then of course there will be people who take advantage, including using the money for terrorism,” Turki said. Riyadh has cracked down on charities and funding for militant activities, in close cooperation with foreign authorities, since Al-Qaeda ’s 2001 attacks on the United States and subsequent shootings and bombings in Saudi Arabia. Among the new measures imposed on Saudis to prevent such activities are rules requiring them to get official permission to donate money to foreign charities.
Pegasystems to buy Chordiant for $161.5 million (tech)
CAMBRIDGE, Mass. – Pegasystems said Monday it will buy Chordiant Software for $161.5 million. Business software maker said the acquisition will help expand its customer base. The $5-per-share offer represents a 31 percent premium over Chordiant’s closing stock price of $3.81 Friday and comes two months after Chordiant rejected an offer from CDC Software Corp . for $3.46 per share. The Chinese business software developer withdrew its offer and sold its 1.3 percent stake in the company. The Pegasystems offer has been approved by both companies’ boards and is expected to close in the second quarter. Chordiant, which makes software intended the help companies better manage customer relationships, reported revenue of $76.3 million in the fourth quarter, Pegasystems said. Chordiant’s clients, it said, will be able to incorporate Pegasystems’s process automation technology, while Pegasystems’ clients will be able to tap into Chordiant’s predictive decision management systems and customer relationship management software and services, the company said. Pegasystems Inc . said it expects the acquisition to increase its adjusted earnings per share by “as much as” 3 cents per share in 2010 and 20 cents per share in 2011. Shares of Chordiant Software Inc ., rose $1.18, or 31 percent, to $4.99 in early trading. Shares of Pegasystems rose $1.75, or 5 percent, to $38.58
US, UK top debt ratings safe for now, Moody’s says (tech)
LONDON – The United States and Britain are more likely than Germany and France to witness an embarrassing downgrade of their top debt rating, agency Moody’s Investors Service said Monday. In a quarterly report assessing the prospects of the triple A-rated countries, including Spain and the “less fiscally challenged” Denmark, Finland, Norway and Sweden , Moody’s warned that the economic recovery remained fragile in many advanced economies. “This exposes governments to substantial execution risk in the implementation of their exit strategies, which could yet make their credit more vulnerable,” says Arnaud Mares, senior vice president in Moody’s sovereign risk group and the main author of the report. Governments and central banks are looking at when and how to unwind their massive stimulus measures, which include historically-low interest rates, liquidity provisions, industry incentives and increased spending. Although some experts warn that exiting these policies too early risks creating a new economic downturn , they are also straining government finances. For now though, Moody’s said the triple A governments don’t face an immediate threat to their top ratings as the servicing of the debt remains manageable — the top credit rating reduces the interest payments countries have to pay on their debt when going to the bond markets to raise capital. However, debt affordability is “most stretched” in Britain and the U.S., Moody’s said. In light of the muted recovery from recession in many countries, Moody’s said government action on spending and taxes is the main way of “repairing the damage” that the global crisis inflicted on government finances. Moody’s said triple A governments also face a “delicate balancing act ” with respect to the timing of these adjustment and that tightening fiscal policy before the recovery has become self-sustainable could risk undermining the recovery, thereby damaging governments’ power to tax. However, it warned that postponing fiscal consolidation much longer is “no less risky as it would test the patience of the market” and could force central banks to take the initiative. “At the current elevated levels of debt, rising interest rates could quickly compound an already complicated debt equation, with more abrupt rating consequences a possibility,” said Pierre Cailleteau, managing director of Moody’s sovereign risk group. The debate about when to start cutting spending is likely to be at the heart of the general election campaign in Britain, which is expected to formally kick off in the next few weeks — most commentators think that Prime Minister Gordon Brown will call an election for May 6 early next month. While Brown’s governing Labour Party is arguing that spending cuts should not be sanctioned until the recovery from recession is on a surer footing, the main opposition Conservative Party says it’s imperative that the government gets a grip on debt soon to shore up market support. Economists warn that Britain is on course to borrow the equivalent of 12.8 percent of gross domestic product in 2009/10 — exceeding the 12.7 percent forecast in crisis-hit Greece and far above the average 6 percent for Europe . In the U.S., the budget deficit this year is projected to be just under 10 percent of the economy, meaning that the Treasury has to sell more and more bills to fund the shortfall. One country that got a thumbs-up from Moody’s was Spain . It said that it was the first triple A government to rise to the challenge when faced with meaningful market pressure to announce such measures, although its adjustment process will “undoubtedly be drawn out and painful.” Other large Aaa governments are not immune to facing the same pressure in the coming months, Moody’s warned.
Investors seek signs of China Mobile 3G commitment (tech)
SHANGHAI () – China Mobile’s 3G outlook will take center stage this week as China ’s three telecoms carriers begin to kick off quarterly results, with market focus on whether the nation’s dominant player will turn up the volume in its low-key 3G roll-out. China Mobile and its two rivals, China Unicom and China Telecom , spent $21 billion building out third generation (3G) mobile networks last year, following the long-awaited but much-delayed awarding of 3G licenses. The trio signed up a combined 10 million 3G subscribers by the end of last year, with China Mobile accounting for about a third of those — well below its overall position with a dominant 72 percent of China’s mobile market . Analysts will look to see whether China Mobile will get more serious about its 3G network, based on an untested homegrown technology called TD-SCDMA thrust upon it by Beijing . “They probably need to do more to drive 3G growth,” said BOC International analyst Allan Ng. “They need to give more incentives for handset suppliers to come up with better products. Technically, it takes some time to sort things out. But if there are enough people working on it, things can move faster.” China Mobile was a darling of investors for years, enticing them with its dominant position in the world’s biggest mobile market where total subscribers now number more than 700 million. TEPID EARNINGS But the company’s growth has slowed to a crawl in recent quarters, and its price-to-earnings ratio now stands at a relatively modest 11 percent versus about 20 percent for Unicom and 16 percent for China Telecom. Analysts expect China Mobile to report little change in quarterly earnings from a year ago, with a consensus forecast of 30.4 billion yuan ($4.45 billion), according to Thomson I/B/E/S. That snail’s pace growth would be similar to the third quarter, when China Mobile’s earnings were up just 2.8 percent. China Telecom, the smallest of the three carriers in the mobile market with about an 8 percent share, is expected to post a 10.7 percent rise in fourth-quarter profit, excluding one-time items from a year ago. Unicom, with 20 percent share, is set to see a sharp drop in profit, though the company’s composition at the end of last year was vastly different from a year ago, following an industry restructuring in early 2009. Shares of the three telecoms firms trailed the broader market last year, with China Telecom and Unicom posting gains of about 10 percent and China Mobile dropping slightly even as the broader market surged more than 50 percent. Analysts will also be looking at acquisition strategies, with a heavy focus on China Mobile following its eyebrow-raising decision last week to buy 20 percent of Pudong Development Bank for $5.8 billion. Unicom also recently confirmed its European arm had expressed an interest in taking part in a consortium bidding for Nigeria’s former state-owned telecoms monopoly, Nitel. But many analysts question whether China’s telecoms carriers — especially China Mobile, which is flush with cash and has tried global M&A before — are truly ready for major deals, especially on the competitive global stage. “Are they really equipped to compete effectively in other markets?” said BOC International’s Ng. “The mobile market is a very competitive market anywhere, in most places around the world. The Chinese market is really very protected.” So far this year, China Mobile and China Telecom have risen 2.7 percent and 7.4 percent, respectively, versus a 3.7 percent fall in the broader market. Unicom’s shares are down 9.5 percent. (Editing by Anshuman Daga)
Bye bye Bajaj: Sun sets on India’s beloved scooter (tech)
NEW DELHI – It was a purchase to be remembered. There was the years-long waiting list to buy it and the jealous stares once you finally got it home. There was the pride of that first ride when, weaving through the streets, you knew that you’d finally — finally! — made it to the middle class. Outwardly it was just a scooter, a spluttering two-stroke Indian-made Bajaj with three gears. All too often, it came painted a sickly avocado-green. But in a time of empty shops and a hobbled economy, it was success. “This was something big,” said Yash Tekwani, a well-to-do New Delhi businessman who can still picture the day in the early 1970s when his father, who ran a tobacco shop, drove home a blue Bajaj. In a working-class neighborhood where most people had only bicycles, the neighbors turned out to gawk. “It was a joyous occasion.” The joy, though, is ending. Later this month, Bajaj’s last scooter factory will roll out its last scooter, ending an era in India’s transition from dreary socialist behemoth into a consumerist powerhouse. And those one-time icons of middle-class achievement will be left to secondhand dealers and armies of sidewalk mechanics. Because in modern India, modest dependability just isn’t enough. “People have more money to spend today,” said Pradeep Tyagi. He sells used motorcycles in the New Delhi neighborhood of Karol Bagh , where dozens of used-car and motorcycle dealers — and a handful of scooter shops — are jammed into a few narrow lanes. “No one wants to spend that money on a scooter.” Wander among the neighborhood’s tiny, dusty shops and it becomes clear how India’s aspirations have changed. Because while India still has desperate poverty — more than one-third of the population lives on less than $1 per day — it has also become a nation of fierce consumers, its buying habits nurtured by a growing economy, easier loans and relentless advertising. In places like Karol Bagh, that means people who once would have aspired to scooters now want motorcycles. And everyone dreams of cars. Just ask Maug Lal. On a recent morning, the 32-year-old garbage collector was outside a Karol Bagh shop , staring longingly at a Honda motorcycle . The bike was red, streaked with racing decals and only slightly used. He had come to look at scooters. Instead, he found himself among the motorcycles. He couldn’t afford one — a low-end used model costs $350; a decent used scooter costs less than half that — but he mumbled that eventually he would be able to save up the money. It would only take four years. Lal kept his fingers resting on the Honda as a friend spoke up for him. “The motorcycle is a real man’s vehicle,” said Mohammed Tajuddin Khan. “When you sit on it you look strong.” It wasn’t always like this. Thirty years ago, India’s economy was mired in central planning and government regulations, back when foreign companies were largely frozen out of the Indian market and only a handful of people could afford anything more than a bicycle. Enter the Bajaj family, owners of a business empire with roots in cotton, steel mills and the beginnings of the scooter business. Bajaj brought mobility to the Indian masses, making a clunky, affordable machine that, with a little squeezing, could carry an entire family. That image — dad driving with one child standing between his knees, while mom rides behind him holding the baby — became emblematic of India ’s slow move into modernity. It seemed like a miracle. And one where only the driver had to wear a helmet. At one point, the best-selling Bajaj model, the Chetak, was selling 100,000 units per month. The waiting list could last a decade and desperate buyers would pay huge premiums above the list price to get one. For a time, Bajaj was the world’s largest scooter manufacturer. Its 1980s sales campaign, an ode to patriotism and nascent consumerism, became iconic on its own, with TV ads showing young boys clutching Indian flags and happy families gathering around scooters. “The Bajaj is ours,” the jingle said, ignoring the fact that the design was largely borrowed from the Italian Vespa. So when Bajaj announced late last year it was discontinuing its scooter business to concentrate on motorcycles, the news set off a wave of hand-wringing: Indian newspaper editorials bemoaned the changing times; Old Bajaj scooter ads became TV and Internet sensations. “Exit an icon,” the Statesman newspaper declared. “Salute the scooter.” Bajaj, though, wasn’t thinking about icons when it made its decision. Scooter sales have plummeted in this decade as motorcycle sales have boomed. Bajaj stopped most scooter production four years ago. “We too feel nostalgic about how dear Bajaj scooters have been to the Indian middle class,” Milind Bade, a top Bajaj official told reporters. “But the business has to move on.” In many ways, Bajaj was simply moving with the Indian economy, which has blossomed since it was opened to outside investment in the late 1980s. By conservative estimates, the Indian middle class is now thought to number about 50 million people, more than five times as many as the early 1970s. More generous estimates put the middle class as high as 250 million — roughly a quarter of the population. They are desperate to buy. The avalanche of advertising — for TVs, apartment complexes, cars, cell phones, sex therapists, silk suits and saris — can make this country look like another America, a place where buying is a sport and a pastime. Along the way, Bajaj has also changed. First it modernized its scooters for increasingly finicky buyers, and then shifted decisively to motorcycles. Its last scooter, the Kristal, sells for about $750 — compared to nearly $2,000 for its best-selling Pulsar motorcycle. Despite the price difference, motorcycle sales reached almost 220,000 in December, an 86 percent increase compared to the same month one year earlier. Only a few hundred scooters were sold. And cars? They are now the new middle-class aspiration. Car sales reached almost 154,000 in February — the highest-selling month ever, and 33 percent more than one year earlier. Last year the Indian-made Tata Nano went on sale at around $2,400, making headlines with its claim to be the world’s cheapest car. While not yet in full production and fairly uncommon on Indian roads, analysts expect the Nano to soon become ubiquitous. If this can make India seem like a place where those clunky Bajaj scooters will soon be forgotten, Neeraj Marwah will make sure that won’t happen. He is an often-scowling man with a scraggly three-day beard whose family has been selling used scooters for two generations. He works out of a concrete store the size of a garage, sitting behind a desk that looks ready to collapse. Young people prefer motorcycles these days, he admits, but there are still millions of Indians out there yearning for their first Bajaj scooter . The are cheap, dependable and easy to repair. Marwah says he’ll be fixing them up and selling them for decades. “Every day I sell at least one of these things,” he said, shrugging. “Bajaj can shut down, but I’ll still be selling them. People will always want them, and I’ll always have some to sell.”
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