Pune-based bike maker Bajaj Auto has decided against going aggressive in the competitive commuter, or 100cc, bike segment even as it is losing ground in the mass volume category represented by its Discover brand.
Rajiv Bajaj, managing director, Bajaj Auto, while launching the new 150cc Discover model, on Monday said the company will focus on creating new categories rather than operating in a highly competitive segment.
"The 100cc category of motorcycles is not created by us, it was created by someone else. And we are not a company to participate in someone else's category for a simple reason that is not rewarding a business. So you will always see us focusing on Pulsars, bigger Discovers, three-wheelers," said Bajaj.
"We have been making 100cc bikes. Though we are not switching it off, but you will not see us launching a cheaper 100cc bike. We have learnt from the mistakes," he said.
The company on Monday launched its new Discover 150cc starting at Rs 52,030-55,030 (ex-showroom Delhi). The company aims to create a new category with this new Discover. The feature-packed Discover 150cc, with aggressive pricing aims to target potential buyers from the 125-150cc segment.
On Bajaj's entry into the scooter segment and whether the company will continue launching more bikes within the mass volume category, Bajaj said, "Our job is to create new categories. If you look at all the successful brands on roads, the market evolves with a new category."
"As much as we are not averse on scoters, we are not averse to 100cc motorcycle either," he said.
At present, Hero MotoCorp is the market leader in commuter bikes, with while companies including Honda Motorcycle and Scooter India, Yamaha India and Suzuki India have also launched products in the segment.
Bajaj said the company will continue to focus on segments having higher profitability. It is currently the biggest exporter of motorcycles and three-wheelers with a share of about 68% and 74%, respectively in overall exports.
Last fiscal when the overall motorcycle sales grew almost 4%, Bajaj Auto volumes declined almost 15% and its market share came down to 20.03% from 24.4% in fiscal 2013, as per the Society of Indian Automobiles Manufacturers.
Bajaj Auto, the market leader in the Pulsar segment, has been losing ground in the mass volume category (represented by Discover), which forms the major chunk of the overall motorcycle market.
While most of the segments – including three-wheelers, exports and Pulsar category of bikes – are doing well for the company, Bajaj said the Discover was the only problem area.
With the new Discover, the company is targeting 20,000 units a month. It has also reduced the number of products sold under the Discover brand.
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