Bajaj Auto, the Pune-based manufacturer of two-wheelers and three-wheelers, has announced plans for the growing ‘executive’ bike segment with a new brand this quarter.
However, the company said it will continue to focus on the entry level and sports bikes segments to further grow market share and volumes. The motorcycle market has three segments: entry level bikes priced at around Rs 40,000, executive bikes priced between Rs 44,000 and Rs 60,000, and sports bikes priced around Rs 1 lakh and above. Sports bike has three sub-segments: S1 priced up to Rs 1 lakh, S2 between Rs 1 lakh and Rs 2 lakh, and S3 above Rs 3 lakh.
In Bajaj’s portfolio, the Pulsar range of bikes is in the sports segment, while the Discover is in the executive segment. Its Platina model and CT 100 cater to the entry level segment, known for their fuel economy and affordability.
In December 2014, Bajaj had set a target to achieve market leadership at the entry level and sports bikes segments in 2015, and the company on Thursday announced that it has fulfilled its commitment.
In the entry segment, Bajaj said it grew its market share from 23 per cent to 36 per cent in the first nine months compared to the set target of 35 per cent.
In the November-December period, following the launch of Avengers, the company said it attained a clear market leadership of 53 per cent in the mass sports segment, priced below Rs 1 lakh, against the set target of 52 per cent.
“The entry and sports segments constitute 43 per cent of the motorcycle industry and Bajaj is now the leader in this cluster with a 36 per cent market share,” the company said.
“In a challenging environment for the automobile industry, Bajaj maintained positive momentum as a result of a well-crafted strategy, called superior customer value through differentiated products and strong brands,” Eric Vas, president (motorcycle business), Bajaj Auto, said.
“By the introduction of new products such as CT 100 and Platina, we strengthened our position in the entry level segment. In the sports segment we enhanced our leadership position through the launch of Pulsar RS 200, Pulsar AS 200 and 150, and Avenger Cruise 220 and Avenger Street 220 and 150,” he said.
CT 100, which was reintroduced in February last year, and the new Platina, which was rolled out in January 2015 helped gain market share and volumes in the entry level segment, Mr Vas said, adding that the Pulsar range of bikes led by RS200, AS200, and AS150 did exceedingly well.
“Pulsar RS200 has become the largest selling performance bike brand priced above Rs 1 lakh. The recently-launched Avengers have clocked sales of 20,000 units in December and we plan to increase manufacturing capacity of Avengers to 30,000 units per month by March 2016,” he said.
Bajaj said it will introduce a new variant of an entry level bike this month and a new brand for the executive segment before March to maintain its leadership position.
