Bajaj bets on new bike to up sales

Pune-based India's second-biggest two wheeler maker Bajaj Auto said today that its new volume generating motorcycle due for launch next month will help the company report double digit growth from August onwards.

Owing to limited penetration capability of the Bajaj brand in rural and semi rural areas and adverse market conditions relating to finance, the company failed to report any growth in sales so far this year.

It reported a combined fall (including exports) of 5 per cent in motorcycles in June with sales of 167,945 units as against 175,903 units reported in the same month a year ago.

In a statement, Rajiv Bajaj, managing director, Bajaj Auto said: "With the launch of a new large volume motorcycle on July 18, Bajaj expects to record high double digit motorcycle sales growth from August 2009 onwards."

The launch of the new motorcycle dubbed as the 'world's most fuel-efficient bike' comes on the back of a recent launch of the refurbished Pulsar 220.

The executive segment (125-135cc) bike which will be strapped with a new version of DTS-Si called 2.0, is aimed at delivering higher mileage without compromising on power. The new bike will be the first of many products planned for the technology, said the company. 

Meanwhile, after being under pressure for past few months, the company reported a growth of 26 per cent in sales of three-wheelers to 24,731 units as compared to 19,629 units in June, which included exports.

Overall exports, which contributed to 35 per cent of total sales grew by 4 per cent to 67,726 in June as compared to 64,878 units in the previous year same month.

"Domestic commercial vehicle sales have begun to grow on the back of marketing initiatives focused on the in-city segment. Exports have almost normalised after the dip in January-March 2009 and are expected to gradually exhibit positive year-on-year growth," added Bajaj.