Bajaj’s plans for 2016

Bajaj Auto, one of India’s largest two-wheeler manufacturers recently commented on their future plans for 2016. This includes the creation of a new brand which they would like to call ‘X’ at the moment which will be positioned in the executive segment.

Products like the Bajaj Discover will fall under this segment along with their new launches of that segment. Eric Vas, President (Motorcycle Business), Bajaj Auto addressing the press at a conference “Apart from the fact that we will be launching a new bike, as of now we call it ‘brand X’; will be positioned in what we call the mature space in the executive segment,” Eric Vas, President (Motorcycle Business), Bajaj Auto told ETAuto in an interview.

“As of now, the company is selling around 20,000 bikes a month in this segment.

With the launch of this new product, our aim is to achieve at least a volume of 70,000 bikes per month”, he added.

Bajaj Auto is trying to turn the wind in favour after facing a tough time in the last few quarters in terms of domestic sales.

It has also recently introduced a new Avenger series. The company is selling around 20k bikes a month in the executive segment. With the launch of this new product, the aim is to achieve at least a volume of 70k bikes per month.

In the entry-level and sports motorcycles segment, the two-wheeler maker has a market share of 36 per cent and 46 per cent, respectively. The company now intends to garner its presence in the executive segment.

In the product range, priced between Rs 1-2 lakh, the company will most probably launch a completely new product in 2016. While, in the entry-level, a new variant of an existing product is on the cards. Apart from domestic sales, where the company has achieved its set targets, the exports scenario is a cause of concern. The company’s year-to-date (April-December, 2015) exports witnessed a 4 per cent decline.

“There exists an issue of dollar availability which until unless gets smoothened out, such hiccups will be there.

We expect this situation to get sorted out by March. Apart from this, we are planning to open up for fresh economies. And moreover, there is a product call Quadricycle. It has been shipped to 16 countries, and retail sales have already started in around 7-8 countries”, concluded Vas.