Bajaj Auto, India’s fourth largest two-wheeler maker, is confident of closing the financial year with a market share of 24 percent on the back of the launch of a new model and a few upgrades.
On the basis of increased production for existing products and for new models, the Pune-based company will outperform the rest of the industry, a senior company official said.
Kevin D’Sa, Chief Financial Officer, Bajaj Auto said,”The Avenger will come with an upgrade - some new features – which will happen in the last quarter of this year. And we are looking to put a vehicle in the mid-commuter segment with a new brand where we have the V12”.
Bajaj launched the ‘V’ series of bikes starting with the V15 in March 2016. Subsequently, the company followed with the launch of V12 in January this year. Both bikes are targeted at the commuter segment for the urban and semi-urban buyer.
“In the second half we expect Bajaj Auto to outperform the industry on the basis of new products which have been very well accepted in the market. The industry should grow by 8-8.5 percent for the year”, added D’Sa.
Bajaj hopes that a new addition to this segment will revive its dwindling sales. From about 22,000-25,000 units a month coming from the V15 alone the ‘V’ family now generates only around 11,000-12,000 units a month.
With increased demand for the CT100 and Platina, refurbished Avenger series and hike in production of the Dominar, Bajaj hopes that it will attain the targeted market share by end of the year. However, there would be no change to the CT100, Platina, Pulsa and KTM family of bikes at least till March 2018.
“The electric start option in the CT and the Platina has given us a growth in the rural market. We should close the year with a market share of 24 percent from the 19.5 percent share that we have today,” added D’Sa.
Further, Bajaj Auto has lined up an investment of Rs 250-300 crore as capital expenditure for the coming financial year. These will be spent in preparing the production commencement of the Husqvarna range of bikes from next year and its own product development.
“In calendar year 2020 there will be the first launch by Bajaj-Triumph”, added D’Sa. Bajaj announced a partnership with UK’s Triumph a few months ago which will encompass a new range of products for Triumph that will be much cheaper than its current range which starts at Rs 6 lakh. The bikes will be made at the Chakan facility near Pune.
The Pune-based company said that retail volumes increased 25 percent during the festive days leading up to Diwali when compared to the same period last year. While domestic motorcycle volumes for September for the company increased 7 percent to 2.47 lakh units its six months volumes for the same period reported a decline of 10 percent to 10 lakh units.
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