A big dividend for Bajaj with its 100-cc two wheelers. The recent launch of Discover enabled the company regain its slot on top – second largest two wheeler company after Hero Honda- in the entry level segment. TVS is also in the fray with these companies. During the recession and the socalled downfall of sales in 2008 Bajaj lost its foothold of second slot that made a thrust to leave the 100-cc segment and to concentrate on bigger and sporty bikes. The SIAM Bajaj and TVS had a close tie on sale figures with 5000 units shooting to 120000 units from April-October 2009. But the volume difference between Bajaj and Hero Honda stood at 2.5 lakh: 1 lakh in the same period.
Bajaj’s stint is really a come back and a morale booster as it had to vie against the major companies like Hero Honda, TVS and Hero Scooter and Motor. Since 2001 the company is lagging behind Hero Honda for the first slot, which it had possessed then. But the company came in for a close knit in September 2006 by a margin of 37000 units. Bajaj has introduced the Pulsar 180-cc and Discover 100-cc this year to retain its status among the customers. The success of these two bikes came from the two different regions with Discover reaching the rural and the Pulsar hitting the urban. The growth made the increase in the market share from 17% in the second half of 2008-08 fiscal.
The overall increase in the 100-cc segment has gone to 290% in the last two months @ an average sale of 90000 units which was 23000 in the same period of the last year. The Discover found some 2 lakh customers ever since its launch to boost the overall increae in market share. The strategy was to launch the long term bike and the strategy worked out well for Bajaj. Now the company wishes to launch the bike which the people like to buy.
The new launches will be upgraded to suit the taste of the customers, said the MD of Bajaj. The analysts view the strategy of Bajaj as a foolish one that the company has ignored the entry level segment which has the potential of 70%. But the company’s mission, against all odds, is to make 2009-10 as the best year for the industry’s history.