Penny Pinching performer

The Economic Times, 27.05.10

Bajaj Auto's latest offering,the new Discover 150 DTSi claims to have mastered the art of balancing mileage and performance,which are two determining factors in the entry-level 150cc segment.Varad More brings you the first impressions of this power-commuter !

Last year Bajaj Auto hit the high note with its Discover 100 DTS-Si entrylevel motorcycle,which not only raked in solid sales figures but also helped the company in further establishing the Discover brand across the country.In order to capitalize on the on-going momentum of the Discover brand,Bajaj Auto has launched the new bigger Discover 150 DTSi staying in tune with the value-for-money aspect of the brand with a corresponding price benefit.This latest entrant from Bajaj Auto is not only lavishly feature-packed but it also offers a fine mix of fuel economy and performance to go along with its power-commuter image.

Styling on the biggest Discover is in-line with its smaller siblings - the allblack engine and frame coupled with identical body panels and the same-old bikini fairing upfront.The graphics on the tank and body panels are revised making the bike look more contemporary as well as giving it a slightly more robust look.Apart from these,Bajaj Auto has not tampered with the exteriors of the Discover 150 DTSi in order to stay committed to the Discover design genome.

There is a lot more to the new Discover 150 DTSi than just mere sticker jobs.The potency of the bike lies with its increased engine capacity as well as improved handling dynamics thanks to its longer wheelbase and wider rear tyre that gives it the sure-footedness often kept limited to premium motorcycles.These handling benefits make for a much planted feel and comfortable riding experience,especially for commuters who have considerable distances to clock on daily basis.The saddle is comfy,large and wide for long hauls while the overall riding position is suitable for riders of different physiques.Add to that the light front-end and raised handlebars,and it makes the Discover a breeze to put through tight spots on our crowded city streets.

This flickable nature of the Discover 150 can be largely attributed to its lightweight structure tipping the scales at just 121kg! Instead of using components from the sixyear old Discover family,the R&D team at Bajaj Auto decided to employ the more modern as well as lighter frame and engine from the now-discontinued XCD range.The 144.8cc motor is packaged inside a lighter engine bay has been taken from the XCD 135 that gives it a solid weight advantage,improving its overall efficiency.The Discover 150 has all the credentials that one would need to convince even the most aware buyer to turn his back over its rival heavyweights (pun intended!)

In its latest avatar with bumped up displacement,the engine produces 13PS of power at 7,500rpm and 12.75Nm of torque available low down from 5,500rpm.Power is transferred to the rear wheel via a 5-speed transmission with an alldown shift pattern that has very smooth and precise shifts.The lightweight single downtube cradle frame is assisted by a 130mm telescopic suspension upfront and twin gas-charged Nitrox hydraulic suspensions on the rear.

Available at hand from low down the rev-range,the power delivery is creamy smooth and precise.Rideability is a forte of the new Discover 150 DTSi as it does an exceptional job of running around the city at 30km/h slotted in 5th gear.Thanks to the urgent power delivery and wellconfigured gear ratios,the bike lurches forward with efficiency that is crucial for swift overtakes in the city traffic.The 12.75Nm of torque is also extremely helpful when carrying a pillion and it actually requires lesser dancing on the gear lever in order to keep the power handy.

Available as standard fitment,the front disc brake has superb bite and provides accurate feedback making it extremely easy and comforting to bring the Discover 150 DTSi to a halt swiftly without upsetting the motorcycle.Talking about standard fitments,Bajaj Auto has once again beaten its competition by offering supreme bang-forthe-buck on the Discover 150 DTSi with standard features such as an electric starter,alloy wheels,autochoke,maintenance-free battery and LED tail-lights at an affordable price-point.With an unbelievably attractive price tag of Rs.46,000 (ex-showroom,Delhi),the Discover 150 DTSi is cheaper than most 125cc motorcycles available in the country today but offers much better equipment and superior overall performance.If you dont believe it,all you have to do is throw a glance at the comparison chart!

HMSI to invest Rs 500 crore

Business Standard, 26.05.10

Honda Motorcycle & Scooter India (HMSI), a part of Japanese automaker Honda Motor, said it will infuse Rs 500 crore into its second two-wheeler manufacturing unit coming up at Alwar, Rajasthan, in a year's time.

"The second plant will have a capacity of 6 lakh units per annum and will be operational by the second half of 2011," HMSI President and CEO Shinji Aoyama told reporters here.

The second plant will cater to the growing demand for two-wheelers.

Production at the company's existing plant at Manesar, in Haryana, will be ramped up to close to 15 lakh units by the end of this fiscal.

HMSI said sales of its motorcycles will overtake its scooter sales in the country in the next fiscal, as there is strong demand for them.

The company, which sold 12.7 lakh two-wheelers in 2009-10, expects to sell over 15 lakh units in the current fiscal, of which 50 per cent are likely to be bikes.

The company said it will be launching its 'VFR 1200' motorcycle in the country soon. The bike, which falls in the imported fun segment, will be priced even higher than its CB 1000RR model, which costs Rs 12.5 lakh.

HMSI regional manager A K Vaish said the company has so far sold 100 high-end fun bikes in India.

On HMSI's export plans, Aoyama said, "In the last fiscal, we sold about 80,000 units in the overseas markets and this fiscal, we are targeting 1.10 lakh units."

TVS Racing aims high

The Hindu, 26.05.10

BANGALORE: TVS Racing, which is now celebrating its silver jubilee, aims to sweep all titles this season, said Mr. Arvind Pangaonkar, General Manager, Research and Development wing of TVS Motors, at a media meet here on Wednesday.

It has indeed been a chequered journey for Team TVS Racing since it made its bow on the two-wheeler racing scene two decades ago, with its newly developed 50cc engine mopeds (TVS 50). It knocked down the dominant Suvega from the perch and since then has gone from strength to strength, winning a series of titles in the motocross, supercross, hill climb, rally and drag events with newer and faster bikes such as Supra, Shogun, Fiero Apache and Apache RTR.

Every top rider in the country of the past including Shyam Kothari, Ashok Raja, Ravi Thirumale, Thirumala Roy, Jagat and Anita Nanjappa and present top riders like C.S. Santosh, Pramod Joshua, P. Karthik and Harry Sylvester, have contributed immensely to the team's success.

“Our team's strength doesn't rely on talent alone, we constantly improvise with our R & D, and making our bikes better and better”, said Pangaonkar.

TVS Racing will participate in all major events in the country this season, which starts with MRF National supercross event at Bangalore on May 30.

Bajaj eyes 50% growth in FY11

Deccan Chronicle, 26.05.10

Bajaj Auto aims to touch a monthly sale of three lakh motorcycles starting May and hopes to increase its sales by 50 per cent this fiscal.

"We are looking at 50 per cent growth. Last year, the average sales were 2.09 lakh per month. From May our average monthly sales will be three lakh units as we have already crossed 2.85 lakh bikes in April," Bajaj Auto CEO (two wheeler) S Sridhar told reporters here.

The company is looking forward to sell premium Austrian KTM bikes in India from 2011-12.

In the Q4 period of 2009-10, the market share of Bajaj increased to 27 per cent from 17 per cent in the corresponding period, Sridhar said.

Talking about the Bajaj-KTM project, Sridhar said the bikes, which would have a minimum price of Rs one lakh, would be launched in 2011-12 after Europe.

In India it would be sold only under the KTM brand through Probiking outlets, Sridhar said.

Bajaj holds close to 36 per cent in KTM Power Sports AG.

The motorcycle industry has been registering a healthy growth of 15 per cent, which is 80 per cent of the two-wheeler market.

Bajaj Auto sees no cost threat

Business Standard, 26.05.10

The country's second largest bike-maker Bajaj Auto today said that the rise in input costs, for commodities such as steel and rubber, was unlikely to eat into the profit margins of the firm due to a shift in consumer preference towards more expensive offerings.

Bajaj While claiming that the two-wheeler major was cushioned against dramatic price fluctuations through standard half-yearly contracts for major input requirements, S Sridhar, Bajaj Auto Chief Executive Officer (2-Wheelers) explained that the majority of sales were taking place in the mid-priced section.

"Unlike last year, when the size of the entry-level market was larger, this fiscal consumers have been shifting towards the higher (priced) category. As a result, the margins are better. We have been able to benefit from our portfolio," Sridhar said.

BS-III-compliant Splendor+ likely to cost more

Business Standard, 25.05.10

With the final notification on new emission norms coming in two months late, Hero Honda Motors India is finally upgrading its largest selling model, the Splendor+, to make it BS-III compliant and thereby, eligible for sales in top 13 cities. However, the new Splendor+ will come with a higher price tag.

“We welcome the final notification on implementation of BS-III emission norms for two-wheelers by the Ministry of Road Transport and Highways, as the industry had been waiting for clarity on the subject from the government. We had started production of BS-III-compliant Splendor+ even before the final notification came, and BS-III-compliant-Splendor+ is being made available in all the 13 cities with immediate effect,” a spokesperson at Hero Honda Motor India said.


While the company refused to share the revised prices, it is estimated that the new Splendor+ will be dearer by Rs 500-1,000.

Hero Honda sells more than one million Splendor+ a year, 25 per cent of its total annual sales. The brand also accounts for 13 per cent of total motorcycles sold in the country.

Some Hero Honda dealers across 13 cities, including Delhi, Mumbai and Chennai, have stopped selling Splendor+ since April 1, as the road transport authorities refused registration of BS-II-compliant Splendor+ due to lack of clarity on the implementation of BS-III emission norms for two-wheelers, resulting in huge revenue loss.

“There is no communication from the company on the upgraded Splendor+. Since the transport authority in Delhi refused to register earlier Splendor+, with effect from April 1, we have suffered a loss in sales of nearly 150-200 bikes a month,” a Delhi-based dealer of Hero Honda Motor India said.

Assuming an average sale of 150 units of Splendor+ at an average price of Rs 40,000 a month, the 100 dealers of Hero Honda across 13 cities lost around Rs 120 crore in April and May.

In fact, to minimise the impact, dealers in cities like Kanpur and Agra, where the transport authorities registered some vehicles even after April 1, are now pitching for Splendor NXG and Passion Pro. “Since the RTO is not registering the older Splendor+ anymore, Passion Pro is gradually taking its space because customers are not willing to wait indefinitely for upgraded Splendor+,” a dealer in Kanpur added.

From June 1, tax up, vehicles costlier

From June 1, tax up, vehicles costlier

Indian Express, 25.05.10

Prepare to pay more for owning a car in Delhi from June 1.

The Delhi Cabinet on Monday decided to raise the registration fee (or road tax) on luxury cars and two-wheelers. The decision comes at a time when the government is mulling a congestion fee and charging citizens who own more than two cars, to help reduce traffic congestion and air pollution in the Capital.

According to the revised road tax rates, the Cabinet headed by Chief Minister Sheila Dikshit held that two-wheelers that cost up to Rs 25,000 will be charged the existing two per cent but two-wheelers that cost above Rs 25,000 will now attract four per cent tax. The rate for cars priced up to Rs 6 lakh has been doubled to four per cent, while it has gone up to seven percent for those that cost between Rs 6 lakh and Rs 10 lakh.

Retaining the tax structure for public utility vehicles like auto-rickshaws and taxis, officials said the increase for non-luxury cars and two-wheelers is minimal.

“This is meant to discourage the use of private vehicles in the city,” Dikshit said.

With neighbouring states like Haryana and Uttar Pradesh charging taxes between one per cent and three per cent, Transport minister Arvinder Singh Lovely said the government has increased the taxes after taking the existing rates into account.

“One cannot get a car registered from another state unless one is a bona fide resident of that state. Residents will have to bypass the law to register a car from another state,” Lovely said.

Bajaj to chase KTM ambitions despite roadblocks

Bajaj to chase KTM ambitions despite roadblocks

Business Standard, 25.05.10

Bajaj Auto, India's second biggest two-wheeler manufacturer, will continue to pursue its broad plans with the Austrian bike manufacturer KTM Power Sports AG, including a gradual increase of its stake in the performance bike making company.

Bajaj intends to be seen as a serious investor in KTM, with the commencement of launches of low-capacity but high performance bikes next year.


CROSS Industries AG, the promoters of KTM, had clarified in February that it did not intend to become a minority shareholder in the company and would continue to hold more than 50 per cent of the shares in KTM.

Bajaj Auto, which holds close to 36 per cent in KTM, hasn't, however, given up on its ambition of having a larger equity participation in KTM in the long run. CROSS Industries currently holds 50.77 per cent in KTM.

Rajiv Bajaj, managing director, Bajaj Auto, said: “We are very happy with the stake we have currently. For us, we have been consistent from day one that the stake is just a means to an end. We do not intend to be a financial investor. We want to have strong back-end synergies between the two companies.”

He added: “On the one hand, we will have a front-end support of the KTM brand, which will have enormous price leverage, and on the other hand, we will have Bajaj Auto adding the cost structure with enormous price advantage. We want to have the correct combination of price and technology and one can always hike the stake further. But, right now, we are at 35 per cent and would like to stay there.”

Bajaj Auto recently hiked its stake in KTM after it bought additional shares through the rights issue floated by the Austrian company for raising capital.

The Pune-based company spent ¤20 million (Rs 120 crore) against the issue to raise its stake to 35.67 per cent from 31.92 per cent. It has spent nearly Rs 1,000 crore since November 2007 on hiking its stake from a mere 14.5 per cent initially.

KTM, meanwhile, had raised ¤42.99 million (Rs 280 crore) through the issue, which it intends to spend on product development and plants. The issue done by the European company was also aimed at solidifying the position of its promoters, ensuring its stake remains more than 50 per cent to ward off any hostile buy-out attempts.

Bajaj had talked of an understanding with the promoters of KTM that the Indian company would scale up its stake to a possible 50 per cent over the next five years. The tie-up with KTM fits in with Bajaj's ambition of going for larger and sportier bikes, desired for the international market. Rajiv Bajaj is also a member of KTM's four-member supervisory board.

Both companies have been actively involved in the creation of high-performance motorcycles since the past couple of years but which are developed on a far better cost structure, thanks to the back-end price support of Bajaj Auto.

Starting this year, KTM will start the distribution of new 125cc models in Europe, which it has developed along with Bajaj Auto. Bajaj will then launch the same in India by the middle of next calendar year, before finally distributing these in markets such as Sri Lanka, Bangladesh, Indonesia and Africa.

“KTM will bring in the high technology it is known for, while Bajaj continues to provide the cost advantage. Through this combination of technology and high price, we want to start realising the high margins expected from the products produced between the two companies,” added Bajaj.

Add to the Dazzle

Add to the Dazzle

The Hindu, 24.05.10

Honda Motorcycle and Scooter India has just launched its all-new CB Unicorn Dazzler. Based on the Unicorn Sports Concept displayed at Auto Expo 2010, the new bike will sell alongside the recently updated CB Unicorn.

The Dazzler sports a modern design borrowing cues from the attractive CB1000R, and is sure to appeal to younger buyers.

Design highlights include a smart bikini fairing and well-executed floating side cowl.

The bike's compact instruments console features a digital speedometer that sits besides a racy, large analogue tachometer. A two-tone seat leads to the bike's stylish tail. The bike will be sold in four colour options.

The CB Unicorn Dazzler uses the same carburettor-fed, four-stroke, 149.1cc, single-cylinder and air-cooled engine that powers the CB Unicorn.

However, peak power has been marginally bumped up to 14bhp at 8500rpm. Max torque is 1.3kgm at 6500rpm.

An MF battery and viscous air filter also find application on the new bike.

Like the older CB Unicorn, the Dazzler deploys a diamond-type frame and uses telescopic forks up front with a monoshock rear suspension. Braking is via a 240mm front disc and 220mm rear disc brake.

The bike, to be available by the end of this month, has been priced at Rs. 62,900 (ex-showroom, Delhi).

Honda has stated it expects to sell 1,20,000 units of the CB Unicorn and CBB Unicorn Dazzler in the coming year.

Honda to launch superbike this year

Honda to launch superbike this year

After witnessing a buoyed response for the premium class superbikes it has been selling since the past one year, Honda Motorcycle and Scooters India (HMSI), the Indian subsidiary of Japanese auto giant Honda Motor Corporation, will launch yet another superbike by the end of this year.

The company will launch the 2010 VFR 1200F in India by December, roughly a year after it was launched internationally. This bike would also be the costliest bike from Honda and could carry a price tag of close to Rs 16.5 lakh, although company officials haven't confirmed it yet.

The bike will be brought to India as a completely imported unit from Japan, which will effectively double its price due to the high import duty structure of around 110 per cent. The VFR 1200F costs around $15,999 (Rs 7.51 lakh) in the United States, the largest superbike market in the world.

The VFR 1200F is classified as a twin-seater sports bike by the company, which has an engine that is bigger and more powerful than India's largest selling compact car, Maruti Alto. The bike sports a 1237cc, liquid cooled V-4 engine which generates a maximum power of 172 bhp.

“Looking at the increasing need for superbikes in the country, we will launch the VFR 1200F by the end of this year. It will be too early to speak about the volumes for the bike at the moment,” said a HMSI executive.

HMSI, the country's fourth largest two-wheeler manufacturer which is more popular in the automatic scooter segment, has been selling the superbikes CBR 1000 RR Fireblade and the CB 1000R in the country since the middle of last year. It has so far sold more than 100 units of the two models, which are priced at 13.36 lakh and 10.21 lakh, respectively, ex-showroom.

Although the introduction of such bikes do not translate into large volumes due to their high price tags (enough for buying four compact cars) the launch is aimed at pushing and enhancing the company's brand image in the competitive domestic two-wheeler market which is dominated by Hero Honda and Bajaj Auto.

Honda's other two Japanese counterparts —Suzuki and Yamaha — have also introduced costly motorcycles in the country recently, which are also garnering a robust response. Both Yamaha, which sells three superbikes, and Suzuki, which sells two superbikes currently, are interested in having more such products.

The companies are also desperately seeking to make inroads into the market with performance and commuter motorcycles and gearless scooters. The launch of superbikes have helped both companies in improving the overall brand image while reporting impressive double0digit growth in sales every month.

In addition, iconic companies like Italian bike maker Ducati and US-based Harley Davidson have also witnessed an equally robust demand from the local market.

Other companies are also lining up to make a foray in India such as Austria-based KTM Power Sports AG and Japan-based Kawasaki. Both companies are expected to launch their range by the end of this year or by the first half of next year.

The superbike market here is small in size compared to some of the international markets such as the US, UK, Germany, China and Japan. But spiralling aspiration of the buying class, aided by an equally robust buying power, has led companies to believe that India is one of the fastest growing markets for such lifestyle products.

The market size for superbikes in 2008 in India, when Yamaha launched its products, stood at 180 units per annum. However, it quickly rose to 500 units last year. Experts say that with growing booking numbers, the market could well touch 1,000 units over the next couple of years.

Honda to launch superbike this year

Honda to launch superbike this year

After witnessing a buoyed response for the premium class superbikes it has been selling since the past one year, Honda Motorcycle and Scooters India (HMSI), the Indian subsidiary of Japanese auto giant Honda Motor Corporation, will launch yet another superbike by the end of this year.

The company will launch the 2010 VFR 1200F in India by December, roughly a year after it was launched internationally. This bike would also be the costliest bike from Honda and could carry a price tag of close to Rs 16.5 lakh, although company officials haven't confirmed it yet.

The bike will be brought to India as a completely imported unit from Japan, which will effectively double its price due to the high import duty structure of around 110 per cent. The VFR 1200F costs around $15,999 (Rs 7.51 lakh) in the United States, the largest superbike market in the world.

The VFR 1200F is classified as a twin-seater sports bike by the company, which has an engine that is bigger and more powerful than India's largest selling compact car, Maruti Alto. The bike sports a 1237cc, liquid cooled V-4 engine which generates a maximum power of 172 bhp.

“Looking at the increasing need for superbikes in the country, we will launch the VFR 1200F by the end of this year. It will be too early to speak about the volumes for the bike at the moment,” said a HMSI executive.

HMSI, the country's fourth largest two-wheeler manufacturer which is more popular in the automatic scooter segment, has been selling the superbikes CBR 1000 RR Fireblade and the CB 1000R in the country since the middle of last year. It has so far sold more than 100 units of the two models, which are priced at 13.36 lakh and 10.21 lakh, respectively, ex-showroom.

Although the introduction of such bikes do not translate into large volumes due to their high price tags (enough for buying four compact cars) the launch is aimed at pushing and enhancing the company's brand image in the competitive domestic two-wheeler market which is dominated by Hero Honda and Bajaj Auto.

Honda's other two Japanese counterparts —Suzuki and Yamaha — have also introduced costly motorcycles in the country recently, which are also garnering a robust response. Both Yamaha, which sells three superbikes, and Suzuki, which sells two superbikes currently, are interested in having more such products.

The companies are also desperately seeking to make inroads into the market with performance and commuter motorcycles and gearless scooters. The launch of superbikes have helped both companies in improving the overall brand image while reporting impressive double0digit growth in sales every month.

In addition, iconic companies like Italian bike maker Ducati and US-based Harley Davidson have also witnessed an equally robust demand from the local market.

Other companies are also lining up to make a foray in India such as Austria-based KTM Power Sports AG and Japan-based Kawasaki. Both companies are expected to launch their range by the end of this year or by the first half of next year.

The superbike market here is small in size compared to some of the international markets such as the US, UK, Germany, China and Japan. But spiralling aspiration of the buying class, aided by an equally robust buying power, has led companies to believe that India is one of the fastest growing markets for such lifestyle products.

The market size for superbikes in 2008 in India, when Yamaha launched its products, stood at 180 units per annum. However, it quickly rose to 500 units last year. Experts say that with growing booking numbers, the market could well touch 1,000 units over the next couple of years.

TVS motors best bet in two-wheeler space: Angel Broking‎TVS motors best bet in two-wheeler space: Angel Broking‎

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Primesite Launches OOH Campaign For TVS JIVE

Nirbhay Taneja | Delhi | May 20, 2010

Primesite, Mudra MAX’s out-of-home solutions unit, executed an ingenious campaign for TVS Motor Company, India’s third largest two-wheeler manufacturer. The campaign ‘Traffic, Ab no tension’ announced the launch of its new range of bike named 'Jive'. Primesite significantly takes this Non -stress drive through Jive by means of an effective outdoor campaign.

The main objective of this campaign was to convey its target group about TVS as a brand that always stands for innovation, easy to handle, environment friendly backed by reliable customer service. Primesite has notably proved to break the clutter and has also created enough buzz in the market about JIVE which is the only clutchless bike introduced in India.

The campaign has kicked off on 25th April’10.The media vehicles like Gantry, billboard, Unipole, bus branding etc. were used effectively to communicate the message. All prominent and arterial routes in West Bengal, Orissa, Kolkata along with 10 other cities across India were targeted. Ideal TG aimed for the campaign was age group of 25 years+, married and into profession like sales, trading, courier, commercial, industrial, or simply, people who are constantly on the move the whole day.

Arun Siddharth, Business Head-Motorcycles, said, “We have worked with Primesite on outdoor campaign for TVS Jive- India’s 1st Motorcycle with Auto Clutch. We required extremely sharp, differentiated and specific traffic joints across 150 towns across the country. We found the execution by Primesite extremely good on this specific requirement. The planning and attention to detail is extremely appreciated. We hope to continue associating with them on our outdoors”.

Commenting on the campaign, Mandeep Malhotra, Senior Vice President, Primesite said, “We are very happy to have a client like TVS & truly appreciate them for launching an auto clutch technology that’s never been put to use on a bike in India before! Primesite has attempted to create memorable flashes for TVS Jive, thus building high recall and strong brand association for the brand.”

Delhi Declaration lists 6 key sectors for close cooperation (Times of India)

May 19,2010
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NEW DELHI: Two days of intense, and at times emotional engagement later , the biggest and most high-profile gathering ever of Indian and Pakistani businesspeople adopted a Delhi Declaration under the aegis of Aman Ki Asha. The aim is to pursue achievable objectives rather than chase ambitious broad spectrum goals, given the current state of relations between the two countries.