Bajaj to pack more punch with new Boxer

Bajaj Auto is all set to deliver a powerful punch with the reintroduction of the Boxer brand in the entry-level segment after a hiatus of six years. In its new avataar, the Boxer will be big, bold and powerful, targeting the workhorse like needs of rural customers that the redoubtable Rajdoot used to fulfil till it was phased out over a decade ago.

“We will reintroduce the Boxer brand in the market in three-four months. The bike will be very different from the Boxer that was introduced in 1997-98 and sold in the Indian market till 2004-05. The new Boxer will be differentiated and will eventually be available with different engine capacities and price points,” said Bajaj Auto president (motorcycle business) S Sridhar.

Unlike the original Boxer that was sold at rock-bottom price of Rs 31,000-32,000, the new boxer will be around the Rs 40,000-mark to ensure that the company did not bleed as it did the first time round. “The Boxer was a good bike. The name had tremendous brand recall. The only problem was it did not make money for Bajaj,” Sridhar pointed out.

That was the reason why Bajaj Auto decided to discontinue investments in the loss making entry-level bike segment comprising and focused completely on the sports and commuter segments where average price points are high and profit margin better. The new strategy panned out perfectly for Bajaj and its sportsbike Pulsar zoomed ahead of the competition, securing an unassailable 50% marketshare in the 1.35 lakh units per month industry. Incidentally, production of Boxer was never discontinued and the bike continued to be successfully sold in African markets.

Next, Bajaj launched the Discover in the commuter segment to replicate the success of the differentiated Pulsar in the sports category. In two years, Discover has become the second biggest bike brand in the segment after Splendor, grabbing 22% marketshare in the 5 lakh units per month industry. The company hopes to increase the share to 24-25% with the introduction of Discover 125. Hero Honda remains the leading player with Splendor Pro and Passion Pro making up nearly 70% of the market.

“Having tackled the two segments, we are now refocusing on the entry-level bikes where Platina has a 30% marketshare in the 1.2 lakh per month industry. Over the next two years, we will take the competition in the entry-level segment head on with different variants of the Boxer. Right now, Bajaj bikes are half the numbers that Hero Honda clocks in the domestic market. We hope to bridge a part of that gap before looking at other products,” Sridhar said, dismissing the possibility of re-launching scooters till the motorcycle mission was achieved.

Chairman emeritus Rahul Bajaj had, during his last visit to the city, hinted that it was time for Bajaj to introduce a scooter in two years as the market had grown significantly since Bajaj’s exit a couple of years ago.