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Bajaj Auto planning to zoom ahead of competition

Bajaj Auto planning to zoom ahead of competition

Bajaj Auto has plans to come out with new entry-level and mid-level motorcycles in the next few months. Being the second-largest motorcycle maker by volume of sales it now plans to climb the ladder to the first. Furthermore, the company wants to intensify the competition between them and Hero MotoCorp Ltd along with Honda Motorcycle & Scooter India Pvt. Ltd (HMSI). This would help to augment its product portfolio. 


The targeted segments are entry-level and middle-level which comprises of 100-110cc engines. Hero and Honda together command 72% and 51% of the market share in the entry-level segment and the executive segment respectively. They comprise of 111cc-125cc motorcycle categories.

 

In FY19, Bajaj Auto has changed its selling strategy. The company undertook aggressive pricing and product positioning strategies in entry-level motorcycles. The market share of Bajaj Auto was 12.78% in FY18 but grew to 17% in FY19. This increase was due to the introduction of brands like CT and Platina. The sales of these two models increased significantly. The sales volume surged by 59% YoY and stood at 7,42,000 units FY19. While the sales volume of Platina increased by 44% YoY at 6,26000 units FY19. Seeing the scope of increasing market share, the company is planning to launch new motorcycles in FY20.

 

The 75cc-110cc engine motorcycles have always been a competitive market. This comprises mainly of four companies, which are: Hero, Honda, TVS Motor and Bajaj Auto. Bajaj Auto’s market share almost decreased to 3% in FY19 compared to 5.31% share in FY18 in the 125cc bikes. But overall sales of motorcycles segment saw an increase of 26% compared to be the previous year.

Therefore, Bajaj Auto has planned to increase its portfolio by introducing more mid-level motorcycles having 100cc-125cc engines.

 

Quadricycle Qute

 

Bajaj Auto has launched a four-wheeled motor vehicle to curb high running costs and provide people with a reasonable vehicle. The price range of Bajaj’s Qute is Rs. 2,50,000 – 2,75,000. Furthermore, the model claims higher fuel efficiency of 43 km/kg for the CNG variant and 35 km/litre for the petrol variant.

 

Other launches in 2019

 

  • Bajaj Dominar 400 – It has 373cc engine capacity and its price ranges from Rs. 1,90,000 to Rs. 2,00,000.

 

  • Bajaj Avenger Street 160 – It has 160.3cc engine capacity and price ranges from Rs. 90,000 to Rs. 95,000.

 

Upcoming Launches

 

  • Bajaj Pulsar RS400 – 373cc engine capacity and estimated price are Rs. 1.70 lakhs. This is to be launched in June 2019.

 

  • Bajaj Pulsar NS125 – 135cc engine capacity and estimated price are Rs. 66,000. This is set to be launched in June 2019.

 

  • Bajaj Pulsar 250 – 250cc engine capacity and estimated price Rs. 1.20 lakhs. This is to be launched in February 2020.

Stock movement

The stock price of Bajaj Auto on 20th May’19, when they planned to come out with new entry-level and mid-level motorcycles declined 1.18% to Rs.3005.85. On 4th May’19, the stock movement was -0.26% at Rs.3031.7.

 

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