With Discover 150, Bajaj eyes bigger market share

The company is offering Discover 150 at a price that is nearly Rs 10,000 less than Pulsar 150

Bajaj Auto, India’s third-largest motorcycle maker, on Monday launched a 150cc bike under the Discover brand, in an attempt to claw back market share, which has come under intense pressure over the past couple of years.

At Rs 53,074 (ex-showroom Mumbai), the Discover is the cheapest 150cc motorcycle in the market. The Pune-based company has taken brand Discover to the premium segment (150cc and above) for the first time, which is otherwise catered to by Pulsar.

The shares of Bajaj Auto in the motorcycle segment dipped to 17.7 per cent by the end of the June quarter with sales of 490,841 units, a drop of 14 per cent compared to the same quarter last year. Its share in the bike segment in FY12 was 25.48 per cent, according to data shared by the Society of Indian Automobile Manufacturers.

Aggressive promotion by Honda in the entry category (100-110cc) and continued domination by market leader Hero MotoCorp pushed Bajaj to the third spot in the ranking. While Bajaj is still the second-largest bike producer in the domestic market, its position is challenged by Honda, which narrowed the gap significantly.

Honda Motorcycle and Scooter India (HMSI)’s share in the domestic market increased to 15.39 per cent by end-June, compared to 7.66 per cent recorded by March 2012. HMSI is aggressively pursuing is ambitions of growing in the rural areas with its models sold under the economy brand, Dream.

Bajaj’s drop in sales come at a time when motorcycle industry sales climbed 10 per cent by the end of June quarter in the domestic market with Hero MotoCorp growing nine per cent and HMSI posting a 35 per cent growth.

The Discover 150 is the fourth model by Bajaj under the Discover brand.

While the company declined to give sales projections for the model, it intends to offer the 125cc consumer the power of a 150cc with a fuel economy of a 100cc.

Rajiv Bajaj, managing director of Bajaj Auto, said: “100-125cc is the biggest segment of the motorcycle market. Every company wants a slice of that segment and it has become extremely competitive. We have been under pressure on the Discover front because of this.”

Bajaj has provided a few reasons why customers should pick the Discover 150. The company is offering the new bike at a price which is nearly Rs 10,000 less than the Pulsar 150 and the Honda Unicorn. Plus, the Discover 150 has some few features that are not seen in competition. For instance, the Unicorn lacks tubeless tyres, digital meter and petal disc brake, which are standard features on the Discover 150.

At 72-km a litre, the Discover 150 is amongst the most fuel-efficient bikes in its category. “We are creating a new category with the Discover 150. This customer won’t go as far as the Pulsar, but he wants the same power as the Pulsar,” added Bajaj.

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