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| Bajaj to hike production of 100 cc bike early next year |
| Press Trust of India / New Delhi Oct 14, 2009, 18:24 IST |
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Two-wheeler maker Bajaj Auto is likely to hike production capacity of its entry-level bikes by January next year, on the back of buoyant sales witnessed after its re-entry in the 100 cc segment.
Since the launch of 'Discover DTS-Si 100' in July, the company has seen a huge jump in the 100 cc segment sales. During the July-September period, sales of Bajaj bikes in the entry-level segment grew by 38.60 per cent to 2,07,113 units from 1,49,433 units in the corresponding period last year.
"Production per month (in the entry-level segment) is geared up for 85,000 units. Further increase in capacity will be in place by January," Bajaj Auto Ltd (BAL) Chief Executive Officer (Two-Wheeler) Sridhar Bajaj told reporters.
Bajaj, however, did not share details on production hike saying since November and December are generally lean months, the current capacity is adequate.
Bajaj Auto has an overall motorcycle production capacity of 2.6 lakh units per month from its three plants at Waluj, Chakan and Pantnagar.
Bajaj, which had earlier said it would move from the 100cc segment and try to woo customers in upper segments, reversed strategy this year and introduced Discover DTS-Si 100cc priced at Rs 40,000 (ex-showroom Delhi) in July.
Bajaj has been increasing its presence in the segment since then, with 108,227 units in September this year. Before the launch of the new Discover, its sales in entry-level segment in June was 29,119 units only.
On the back of good performance in the entry-level segment, Bajaj Auto's September sales were at 182,902 units as against 162,074 units in the same month last year.
Sridhar said the company's positioning strategy of its entry-level bike has clicked with customers.
"The results are very good. The reason is the rare combination of bigger bike with premium imagery and actually frugal inside. It is the case of good customer insight and brand story," he said.
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