Bajaj’s withdrawal from the scooter segment won’t shatter the industry, feel the analysts. It is to be remembered that Bajaj has decided to see the way for the exit from the scooter industry, following the sale debacle with its Krystal. It is quite strange that the pioneer in the scooter with the popularity cult of Hamara Bajaj has to surrender to the situation meekly. The other makers are sitting pretty with their sale showing good prospects. Even the new entrant to the scooter sector, M&M has been showing good stint.
The figures available through SIAM adduce the fact. The sale proceeds in the period of April-November are available (the figures for the last year are in brackets) Honda Motorcycles has a good stint with the sale of 452641 units (447177 units at an increase of 1%), TVS has a selling total of 200164 units (166518 units with an increase of 20%), Hero Honda Motors with 127701 units (91957 units at an increase of 39%), Suzuki filed a remarkable growth even in less numbers 77663 units (55130 units at an increase of 41%), the new entrant M&M got the sale of 29778 units this year.
But the sad state of Bajaj with just 3356 units (7876units at a decrease of 57%) compelled the company to think over continuing in the scooter industry. Bajaj, on the otherhand, is to focus solely on motorbikes with its Discover and Pulsar producing enormous results taking the company to the second largest in India with the growth of 12.4% by selling 1085785 units. However, HMSI could muster only 1.2% in the last 8 months while retaining the 50% share in the motorcycle segment.
TVS the next largest maker, could get 23% of the market share. The reason that Bajaj is least bothered about the withdrawal of scooters is that the current trend points towards the scooters on feminine sector. It is no longer the domestic vehicle but the women’s vehicle.As Rajiv Bajaj took over Bajaj’s supremacy, he shifted the focus on the bikes especially the higher end.
This is because it has higher margin and higher value and has the prospective growth of 17-18%. The TVS CEO has somewhat different view that there is a growth for scooter segment and he informed the launch of a new 110cc Wego’. With the increased production at Manesar plant HMSI plans to concentrate on scooters and is on the verge of launching new models said its CEO.