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NEW DELHI: With customers in rural India moving beyond frugality and beginning to demand safety and performance oriented bikes, Bajaj Auto Ltd is gearing up to cash in on the new trend with products suited to meet requirements of the hinterlands.
The firm that is aiming to sell around three million units in the domestic market this fiscal is witnessing robust demand for more powerful bikes of 125 cc and 150 cc for its Discover model from the rural areas.
It will be adding another model, Boxer 150 cc -- dubbed as 'Tank on Two Wheels' -- by August this year targeting the rural market.
"Our market studies have found that there is a change in the demand from rural customers. They are moving beyond frugal, mileage driven products. They are asking for bikes that provide them safety and performance," Bajaj Auto ltd (BAL) President (Motorcycles) S Sridhar told PTI.
The company caters to the rural market mainly with its Discover range and has been experiencing the change as reflected in the pattern of sales.
"Out of about 1.3 lakh units of Discover that we sell every month, about 45 per cent is from the 125 cc and 150 cc and the rest from the 100 cc variant," he said, adding till about a year back the entry level 100 cc accounted for over 95 per cent of the sales.
"Within three months time we expect the ratio to be 50- 50 and eventually the Discover 125 cc and 150 cc combined will overtake that of the 100 cc," he added.
The company has been conducting a lot of market research and found that the rural customers are seeking for bikes with wider tyres that gives more road grip, which essentially requires higher engine power, he said.
"Already in North and East India, half of the Discover market has moved to the higher engine capacity bikes but the South and West is lagging behind. We are focusing on these regions," Sridhar said.
In order to add more punch to its portfolio to cater to the rural market, the company will be launching its Boxer 150 cc by August.
"This will not be a mileage driven product. We are currently test marketing it in Uttar Pradesh and Maharashtra. By August we expect to launch it in the market and take it across the country in the months to follow," he said.
Source: Bajaj to ride on rural demand for safety, performance bikes - The Economic Times
The firm that is aiming to sell around three million units in the domestic market this fiscal is witnessing robust demand for more powerful bikes of 125 cc and 150 cc for its Discover model from the rural areas.
It will be adding another model, Boxer 150 cc -- dubbed as 'Tank on Two Wheels' -- by August this year targeting the rural market.
"Our market studies have found that there is a change in the demand from rural customers. They are moving beyond frugal, mileage driven products. They are asking for bikes that provide them safety and performance," Bajaj Auto ltd (BAL) President (Motorcycles) S Sridhar told PTI.
The company caters to the rural market mainly with its Discover range and has been experiencing the change as reflected in the pattern of sales.
"Out of about 1.3 lakh units of Discover that we sell every month, about 45 per cent is from the 125 cc and 150 cc and the rest from the 100 cc variant," he said, adding till about a year back the entry level 100 cc accounted for over 95 per cent of the sales.
"Within three months time we expect the ratio to be 50- 50 and eventually the Discover 125 cc and 150 cc combined will overtake that of the 100 cc," he added.
The company has been conducting a lot of market research and found that the rural customers are seeking for bikes with wider tyres that gives more road grip, which essentially requires higher engine power, he said.
"Already in North and East India, half of the Discover market has moved to the higher engine capacity bikes but the South and West is lagging behind. We are focusing on these regions," Sridhar said.
In order to add more punch to its portfolio to cater to the rural market, the company will be launching its Boxer 150 cc by August.
"This will not be a mileage driven product. We are currently test marketing it in Uttar Pradesh and Maharashtra. By August we expect to launch it in the market and take it across the country in the months to follow," he said.
Source: Bajaj to ride on rural demand for safety, performance bikes - The Economic Times
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