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| Edited By: Sindhu Bhattacharya |Source: DNA |Updated: Mar 30, 2018, 04:06 AM IST
Motorcycle sales have been growing at a fast clip this fiscal, but one thing is apparent - the dominance of entry-level bikes in the overall scheme of things has begun to wane.
The share of 75-125 cc bikes, as per classification by the Society of Indian Automobile Manufacturers (SIAM), was 58% in overall domestic bike sales in January 2010, but fell to 53% this January.
And Bajaj Auto seems to have grasped this reality quickly. CEO of Bajaj’s two-wheeler buisness, S Sridhar, told DNA Money that the company has been consciously moving away from the entry level segment, upgrading customers to bigger bikes. Bajaj’s sales in this category fell to 90,056 units (106,119 units) last month and Sridhar said this was largely because of an almost 10,000 units decline in the sales of Platina 100 cc.
Sridhar asserted that the 20% Ebidta margins that Bajaj Auto has been reporting happened only because of the company’s accent on larger bikes.
