Bajaj is no exception for price rise

India’s second largest two wheeler company Bajaj is greasing its exchequer with a price rise for its products. The company cites the rise of price in raw materials and the rise in the products may be from Rs800- Rs1000. Bajaj is sending communication to its dealers in this regard. Already Hero Honda has increased price for its bikes by Rs1000. Bajaj would benefit out of this price rise in terms of operating margin, which had been deprived as a result of severe competition in the market. The rise is applicable for all models, including Platina, said the company sources.

Backed by its two star packed models Pulsar [images] and Discover [images], Bajaj secured a sale of 2,69,488 units in last month, making a growth of 63%. This rise in sale was a common factor for all two wheeler makers in the country in the initial months of this year. The reasons cited are the purchase power of the rural sector which contributed much. There is a talk of continued growth in the market again with the back up of rural contribution. The companies are worried about their margin range because of the commodity prices. This inspite of the companies passing over the rise to the customers directly. SIAM report indicates a growth of 25.43% in two wheeler market(17.92 lakh units) during April and May which was 14.28 lakhs in January and February this year. The same period witnessed the increase in the production by 31%.

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