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Rajiv Bajaj: I focus on the motorcycle market, not the stock market

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  • Rajiv Bajaj: I focus on the motorcycle market, not the stock market

    product differentiation. With 65% of the market share held by the 100ccthey will not be increasing dealer margins, as they do not believe in sales dependent on dealerships. He said that if a product is different a consumer will not mind travelling extra just to buy that product.

    Bajaj also spoke about the predicament that Hero currently finds itself in. Hero is always the most effected in a flat market coupled with the fact that they were simultaneously trying to expand their network. This has hit HMC very hard.

    Looking to the next financial year, Bajaj expects Honda and Hero to try very hard to grasp the market. Hero will try to stem their volume and market share loss. While Honda after the separation with Hero will try to achieve their target, which generally is 50% market share.

    Regarding exportsrumours of a scooter launch by Bajaj, the MD said that entering the scooter market would not be a de-risking move, but it will actually turn out to be a distracting move. As such, the company has no plans to enter the scooter market anytime soon. Choosing to focus all its resources on the motorcycle market, especially the commuter segment along with a strong pitch towards exports.


    Source: Have maintained profitability despite economic headwinds: Rajiv Bajaj, Bajaj Auto - The Economic Times

  • #2
    News Approved
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    • #3
      Originally posted by NewsReaper View Post
      Commenting on the recent rumours of a scooter launch by Bajaj, the MD said that entering the scooter market would not be a de-risking move, but it will actually turn out to be a distracting move. As such, the company has no plans to enter the scooter market anytime soon. Choosing to focus all its resources on the motorcycle market, especially the commuter segment along with a strong pitch towards exports.


      Source: Have maintained profitability despite economic headwinds: Rajiv Bajaj, Bajaj Auto - The Economic Times
      the last part puts to rest the other rumour in news section that bajaj is going to launch a scooter soon.
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      • #4
        Notice the words "anytime soon". It WILL come. They cannot keep ignoring the scooter market forever. And the word "distracting" indirectly implies that current priority is to modernize the Pulsar and Discover lineup. So maybe AFTER that, we could see one of those engines plonked into a scooter.
        Currently without a vehicle. Uber App and Bangalore Metro serving all my travel needs.

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        • #5
          I do not think bringing scooters will be a distracting strategy. If thats true why Bajaj is into three wheelers and why are they so desperate to get into four wheelers through RE-60. Do they not involve moving resources and time away from Motorcycle planning?

          In my view the real concern for Bajaj is if they have to move to scooters then even that should be earning good margins as they earn on bikes and threewheelers which is the famous 20% EBITA which Rajeev Bajaj always talk about. with current competition in scooters market it will be difficult for bajaj to make a dent or gain market share with good premium like pulsars or discovers. So they have to bring out a performance oriented scoot which is very different from exisiting lot of cummuting scooters. So i think they are busy in designing such a product which is very different from current ones and will be able to justify the premium with its features, styling and perfomance.

          Even Hormazd has the same to say about the upcoming new Bajaj Scooter and specifically says not to believe any reports to the contrary. So i feel Mr Bajaj will keep saying these words until they comeup with the right product which meets the expectations.

          Read What hormazd has to say here.

          Autocar site : "We’ve heard Rajiv Bajaj state that the company may explore and ride down this route again, as and when it decides the time is ripe. That’s happened now, for we can share confirmed news that Bajaj are burning the midnight-oil developing an all-new, exciting automatic scooter for India. "

          Hormazd Tweet : Big Scoop! Bajaj to get back into scooter market don't believe reports to the contrary.

          Only time will tell whats going to happen. But as someone said in this thread Bajaj cannot stay away from scoots for a long time when this is the only segment which is showing a good growth.

          To add how Bajaj decides on prototypes and new products : "
          Even in the development stage, it is believed that for instance if a prototype of a particular model didn't meet the operating margin or performance criteria, it would be considered as a no go." Source : Equity Master
          Last edited by s_hari; 01-24-2013, 02:40 PM.

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          • #6
            Launching Scooters is no big deal but making them Successful Is, specially when every one has choice from brands Like Honda,Yamaha & SUZUKI
            Don't Honk Unnecessarily

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            • #7
              This is very good site , I really like it , https://beststockstips.com/

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