Bajaj To Unleash Phalanx Of Models
Plan to leverage marketing network via multi-product thrust
The Rs 3,454-crore Bajaj Auto Ltd is planning a line of new product launches in the current financial year in a bid to regain its market share and boost sales. The company proposes to launch a 100 cc 4-stroke motorcycle - the Cargo - in October 1997, another 110 cc 4-stroke motorcycle - the BR 181 - in December and a third, 125 cc 2-stroke motorcycle - the RR 125 - in January 1998.
Besides these, the company's plans include the launch of the upgraded 4S Champion in July, a new RE-Diesel in August, an upgraded M80 in September, and the new scooterette Cygnet in November. Mass production of the upgraded Classic SL, which is to be launched later this month, has already started, Rajiv Bajaj, vice-president, products of Bajaj Auto told Business Standard.
The introduction of these new models and upgradation of existing products is expected to help Bajaj regain its lost market share, feels Bajaj. "I believe that we have the best marketing network and with these product introductions we should be in a position to largely restore the loss in our market share," he said.
The new products are also expected to help restore Bajaj's image which has suffered with a view gaining ground that the company lacks sound technological base.
"Moreover, Cygnet, Classic SL, BR 181 and RR 125 in particular will also once and for all demonstratively put an end to the misgiving that appear to be weighing in people's minds regarding the engineering capability of Bajaj Auto," Bajaj said.
Bajaj Auto sales dipped by 13.5 per cent during April-May 1997 over the sales during the corresponding period in 1996. The sales during April-May 1997 are 203,108 units as against 234,893 units in April-May 1996, Bajaj said.
Attributing the dip in sales and market share to the company's failure in upgrading its product line and introducing new models in 1996, Bajaj said "Since we have not effected any significant product upgrades or introduced any new products in the last 12 months we are witnessing a loss of market share," Bajaj said.
Besides, the changing nature of the Indian two-wheeler and three-wheeler market has resulted in the dip in the company's sales, Bajaj felt. "The overall two- and three-wheeler market has exceeded the level of 3 million units per year. I believe that from here onwards manufacturers will grow largely by extracting market share from their competitors as the absolute growth in the market itself will not be of the order that we have been experiencing in the past," he said.
It may be mentioned that while TVS's moped sales are stagnant their scooterette and motorcycles are witnessing a growth. Similarly, Honda's scooter -- namely Kinetic Honda, Sleek and Street -- sales are down while the sales of CD and Splendour are growing.
LML's NV, Select, and Supremo are down while the sales of Star are growing.
The sales of Escort, Kinetic Engineering and Majestic Auto are all stagnant.