May 14, 2012: Bajaj Auto has launched the Discover 125 ST (Sports Tourer) motorcycle and positioned it in the sports commuter segment that witnessed a growth of 38 percent last year. the new motorcycle combines the styling and performance of a sportsbike with the comfort and economy of a commuter motorcycle.
Powered by Bajaj’s patented DTS-i Twin Spark technology, the engine has been designed with four valves for the first time. The new Discover delivers 12.8bhp of power, the highest in the 125cc category, without compromising on fuel efficiency. Other product highlights include the company’s patented ExhausTec technology for enhanced driveability, five-speed gearbox, mono-shock nitrox suspension, specially designed anti-vibration frame and a petal disc brake.
The new Discover 125ST will be available at all dealerships by August across India with supplies to dealers to commence by June-end. The Discover 125 registered sales of 56,000 units per month in the last fiscal year and has garnered a 40 percent market share out of the 17 percent market share held by the sports commuter segment in the motorcycle industry.
Strategy revealed
While outlining the company’s strategy, managing director Rajiv Bajaj said that the company will focus on introducing more products and variants from the new Pulsar 200 NS and Discover 125 ST platforms. The new Pulsar 200 NS naked sports bike that was showcased in January this year will be launched later this month at under Rs 1 lakh (ex-showroom) in Maharashtra followed by other states as production expands.
“The test of a good strategy is the bottom line of the business. We have been maintaining a 20 percent operating margin for the last two to three years and hold a 25 percent market share in the domestic motorcycle market,” elaborated Bajaj. Comparing the operating margins of other companies, he stated that the industry highest is 12 percent, with Hero MotoCorp posting 12 percent, Maruti 11 percent, Tata Motors 6-7 percent, Ashok Leyland 6-7 percent and TVS 6 percent
Going forward, Bajaj Auto intends to keep a laser-sharp focus on promoting its two winning motorcycle brands Pulsar and Discover, projecting itself as a specialist bike maker. The Platina, which registered sales of about 50,000 units last month, will not be discontinued but will not undergo any further improvements or investments.
In the last fiscal, the company clocked sales of 4.35 million vehicles, doubling from the 2.2 million units in March-end 2009 and tripling exports from half a million to 1.5 million units during the last three years. Similarly its revenue rose from Rs 10,000 crore to Rs 15,000 crore in the first nine months of 2011-12.
“It may double to Rs 20,000 crore when the results for FY2011-12 are declared,” said a confident Rajiv Bajaj. Profit after tax has also kept pace, increasing from Rs 660 crore in March-end 2009 to Rs 3,000 crore in the first nine months of FY’12. The manufacturer is expected to end the fiscal with PAT in multiples of 5 to 6 times higher than the 2009 figure.
Bajaj Auto is currently the world’s third largest motorcycle manufacturer with a market share of 10 percent in a 35 million vehicle market.
SHOBHA MATHUR