Bajaj upbeat on domestic market prospects

Bajaj Auto is upbeat on its prospects in the domestic market this fiscal though growth had remained flat at 6.16 lakh units in the last quarter of 2011-12. The new Discover 100 launched last month and its more recently unveiled sibling, the 125 ST, along with the Pulsar 200 NS are expected to be the key drivers in the coming months. Commuter segment “These are three strategically important motorcycles which should do the trick in boosting numbers in the domestic market,” Mr Rajiv Bajaj, Managing Director, told Business Line. The Discover has helped the company increase its presence in the commuter segment where Hero is the clear leader with its Splendor and Passion models. Realising that it would be near impossible to replicate these numbers in the 100-110cc category, Bajaj Auto has been focusing on the 125cc segment instead. It is here that the all-new Discover ST is expected to play a pivotal role. This has been the company's thinking for sometime now when it first launched the XCD 125 five years ago. However, things began to fall in place only in 2009 when it honed its motorcycle brand strategy. The Discover was identified as the mascot for the commuter segment and became the best option for those buyers seeking an affordable Pulsar. In the process, it spawned the sporty commuter option which could grow once the Discover ST makes the right connect with its buyer base. Vehicle volumes The ‘less is more' mantra has clicked for Bajaj Auto whose focus is now largely confined to these two bike brands along with ‘RE' in the commercial vehicle space. The Boxer is a key component of this strategy for the African market while the more recent KTM Duke 200 will enhance its brand image. “Over the last three years, our vehicle volumes have doubled to 4.4 million units while profits and revenues have also grown strongly. It is my belief that with a stronger tailwind in place now, we can work at the same pace over the next three years,” Mr Bajaj said. The commuter segment will see a fierce tug-of-war this fiscal with Honda launching the 110cc Dream Yuga to take on both Hero MotoCorp and Bajaj Auto. The Japanese automaker plans to pull out stops in the coming years to make its presence felt in motorcycles where its 125cc Shine is presently clocking the largest volumes.