Bajaj Auto Plans Two New Motorcycle Brands Across 125-250cc Range in FY27

Bajaj Auto plans to introduce two new motorcycle brands covering the 125cc to 250cc segment during FY27, as the company seeks to strengthen its position in the higher-capacity motorcycle market and regain lost market share.

Speaking during the company's Q2 FY27 earnings call on Tuesday, Joint Managing Director Rakesh Sharma said the two brands would collectively address different customer segments in India and international markets, complementing the existing Pulsar portfolio.

"Through two new brands, we will address the 125 to 250 segment and some subsegments within that, both in India and globally," Sharma said.

He clarified that the two brands would complement each other rather than individually cover the entire displacement range. However, the company has not disclosed their names, product specifications, pricing or launch dates.

The latest announcement marks an expansion of Bajaj's earlier strategy. During its Q1 FY27 earnings call in July, the company had outlined plans for two brands focused on the 125cc motorcycle segment, aimed at attracting customers with different requirements and encouraging existing 100cc motorcycle owners to upgrade.

Sharma had then indicated that the brands would have propositions different from Pulsar, allowing Bajaj to address customer groups not adequately served by its existing portfolio.

The decision comes as Bajaj attempts to strengthen its presence in the 125cc-plus motorcycle market, where growth and demand for premium models have been stronger than in the entry-level category.

Bajaj Looks to Recover Lost Market Share

During the latest earnings call, Sharma acknowledged that Bajaj had lost market share in the 125cc and 150cc-plus motorcycle segments last year, partly because several existing products were nearing the end of their life cycles.

He said the company had started refreshing its portfolio with higher-capacity motorcycles before moving to the 125cc segment, as premium models help establish the brand's positioning and influence demand for lower-capacity variants.

"We started with the 150cc plus segment because the 150 segment set the tone for the 125, which is, you know, a derivative of the 150," Sharma said.

The strategy has begun showing results in the 150cc-plus category, particularly for the Pulsar NS and N series, which management said were growing faster than the market.

However, older Classic Pulsar models continued to weigh on Bajaj's overall market share as the company worked to clear existing dealership inventory.

"The whole reason for refreshing the old Pulsars was because the market share was stagnating, if not eroding slowly," Sharma said. He expects the situation to improve as newer models replace older stocks and gain wider acceptance.

Bajaj has also deliberately adopted a more selective approach in the 100cc segment, raising prices to protect profitability, even at the cost of lower volumes.

Sharma said the company was willing to accept market-share losses in the entry-level category rather than compete aggressively on pricing, while concentrating its product investments on the 125cc-plus segment.

Pulsar Refresh Begins to Gain Traction

Bajaj introduced several new and upgraded motorcycles in recent months as part of its wider portfolio overhaul. In August, the company launched the new Pulsar 125 and Pulsar 150 at introductory prices of Rs 92,900 and Rs 1.15 lakh, respectively, ex-showroom Delhi. The motorcycles received updated engines, gearboxes, suspension, digital displays and additional rider-focused technology.

The launches followed the introduction of the Pulsar N160 S and N160 SS earlier that month. Bajaj has since expanded the range further with updates to the NS400Z, N250 and NS200.

According to Sharma, the contribution of recently introduced motorcycles to Bajaj's 125cc-plus portfolio rose from 7% in August to 26% in September and further to 33% during the first 16 days of the festive period.

The growing contribution suggests improved acceptance of the refreshed range, although management acknowledged that it would take time for the full impact to become visible in overall market-share data.

Sharma said the company's N and NS series were already performing better than the market, while the newly introduced Classic Pulsars were expected to support further improvement as existing inventory was cleared.

"The drag was the classics and the 100cc," he said, adding that the transition to newer models should gradually improve the company's competitive position.

Bajaj is also preparing additional refreshes and upgrades across its Pulsar and Dominar motorcycles in the 160cc to 400cc range.

New Brands to Support Export Expansion

The planned brands are also expected to strengthen Bajaj's international motorcycle portfolio. Sharma said the two brands would address customer segments in both India and overseas markets, although the company has not identified the countries where they will be introduced.

The strategy comes amid strong export growth. Bajaj Auto's overseas shipments increased 41% year-on-year to approximately 7.8 lakh vehicles in Q2 FY27, with motorcycle demand particularly strong in Africa and Latin America.

According to management, motorcycle exports to Africa rose 83%, while shipments to Latin America, including Brazil, grew 44% during the quarter.

Sharma said Bajaj expects future export growth to come from increasing market share, entering new product segments in existing markets, expanding into additional countries and strengthening its collaboration with KTM.

The two new brands will form part of Bajaj's wider effort to expand its presence in the 125cc-plus market, alongside the Pulsar refresh and a more selective approach to entry-level motorcycles.