Bajaj Auto plots new product blitz to help recover lost market share

Bajaj Auto, India’s second largest motorcycle manufacturer, has aggressive plans this fiscal to capture its lost market share.

The company expects to clock higher sales numbers on the back of new product launches. While it has already rolled out five new models (Platina ES, CT100, RS200, AS150 and AS200) since January 2015, it is set to launch at least three more new products (including an upcoming Pulsar model within this quarter) later this year.

The company, which sold 328,452 fewer units in 2014-15 compared to its total sales in 2013-14, has borne the brunt of the flattening domestic motorcycle market in India, which grew by only 2.50% percent YoY (as against 25% growth in the scooter segment) during 2014-15.

According to SIAM data, Bajaj Auto registered total sales of 17,70,778 motorcycles in 2014-15 as against 20,99,230 units sold in 2013-14. Total domestic motorcycle sales for 2014-15 stood at 10,743,549 units as against 10,481,115 units in 2013-14.

SIAM data further states that while Bajaj Auto enjoyed a market share of 20.03 percent in the motorcycle segment in FY2013-14, the same fell sharply to 16.48 percent in 2014-15.

Talking exclusively to Autocar Professional on the sidelines of the Pulsar AS150 and AS200 launch in Pune on April 28, Eric Vas, president, motorcycle business, Bajaj Auto, said: “Yes, there is one more Pulsar, which will come hopefully very shortly (Q1, 2015-16). And then we have another set of products that will come either halfway through the year or after that. So not in Q1 but may be in Q3 and Q4 of FY2015-16. These would be another set of launches not in the Pulsar range (likely to be in Avenger cruiser and commuter space).”

While it is known that an all-new Avenger model is in the works, the company also has plans of pepping up its Discover commuter bike portfolio further.

“We have been looking at the Avenger segment for some time and are trying to understand what can be done. We will gradually bring our focus back on that brand because we think there is a lot of potential on that end of the market. On the other hand, the Discover brand has had its set of launches last year, which is still bending its way into the market. We’ve got to where we wanted to go with the Discover 150 and I think we will stabilise that for some time. And then we will do the next step. There is something planned but I think it is premature to talk about it right now,” the senior official pointed out.

For this year, Bajaj Auto aims to sell close to 2,500 units of the recently launched RS 200 a month (30,000 units per annum) and 10,000 units of the AS150 and AS200 combined monthly (120,000 units per annum). “And in the 100cc end of the market, we are aiming to do approximately 40,000 units additionally per month (480,000 units per annum),” added Vas.

With five new products already launched this year, the company is now looking to smoothen the product demand-supply equation across various markets in the country.

The senior company official further explained that “We have received a very positive response from the market for the Platina 100 ES and the CT100. We are shipping more than 20,000 units of the Platina 100 ES per month currently. And the CT100, we do not have the capacity to meet the demand. This month (April 2015) is the first month when we were able to supply this model to all the markets in the country. Previously, we did not have the capacity to support more than four states in the country. I think eventually, we should be able to ship out more than 60,000 units of the CT100 model per month.”

It is interesting to note that of a massive portfolio of 19-20 motorcycles (including the KTM line-up and excluding the Kawasaki models), close to 40 percent of models (eight) are positioned under the Pulsar brand umbrella. The company claims to sell more than 55,000 units of the Pulsar range every month in the domestic market currently.

Bajaj Auto launched the AS 150 and AS 200 for Rs 80,573 and Rs 91,067 respectively in Pune yesterday. Both the prices are ex-showroom, Pune.

The company is currently supplying its most expensive Pulsar model, the RS 200, to only 17 cities. It plans to start supplying the model to another 40 cities within the next few days.

“The Pulsar RS 200 is a sophisticated product and the supply to dealerships is based on the technological upgradation and worker training at the dealership level. That takes a little time and that’s one element that controls the roll out (of the models).” explained Vas.

Since its launch on March 26, the RS 200 has garnered more than 3,500 bookings, says the company official, who is looking at boosting the model’s supply across the local markets.

Bajaj Auto’s total domestic network covers approximately 450 towns via 650 dealerships.

Given its plans for this year, the company is upbeat about restoring its growth within this financial year. “We expect that there will be a substantial uptick in our market share after we launch a couple of more new products,” he concluded.

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