Bajaj Auto, the second largest two-wheeler manufacturer of India, is planning to strengthen its presence in the ungeared (automatic) scooter market by 2010.
Currently Bajaj Auto has only one ungeared four-stroke 100 cc scooter called Bajaj Kristal DTSi. This company plans to launch new models in that space next year.
According to the CEO (two-wheelers) of Bajaj Auto Ltd S. Shridhar, "We are interested in the scooter market and will launch new models in the ungeared segment. The brands we are looking at will not be replicas of the Scooty and Activa which are currently available. The core of our scooter offerings will revolve around excitement."
Shridhar was speaking on the sidelines of the launch of the companys XCD 135 DTSi motorcycle in the capital on Wednesday.
Bajaj was once the undisputed leader in the geared segment with such bestselling models like the Chetak and Super. The company had stopped production of these brands in 2006 due to plummeting sales and enforcement of stricter emission norms.
Later, the Pune based manufacturer entered the scooter market again in 2007, with the launch of the automatic Kristal scooter.
Market sources said that the company did not put in enough marketing efforts to promote automatic scooters. According to a dealer, "Even the Kristal now sells less than similar products from competitors. The entire energy of the company is being spent on developing and selling motorcycles."
The emphasis on the scooter segment seems to be well-timed. While motorcycle sales posted a flat growth of 0.30 per cent between April and December 2008, those of ungeared scooters rose by a healthy percentage of 8.36.
This graphical record of the company does not prove that the company is going slow on the high-end executive motorcycle segment (125 - 250 cc) in the domestic market. "Our success as a manufacturer of motorcycles rests on having a marketing strategy that is brand-led rather than product-led. Its rewarding to work on a brand-led strategy," said Rajiv Bajaj, MD, Bajaj Auto.
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