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Rajiv Bajaj in a recent interview spoke about the conditions under which Bajaj Auto would be willing to re-enter the scooter market.
He intends to return to the scooter market only when Bajaj Auto has a 30-40% share of the motorcycle market and the company does not find any scope to grow further in that sector.
With the scooter market the fastest growing category in the two-wheeler market, it does not appear very likely that Bajaj will stay away for too long. But the CEO and MD of Bajaj Auto has his strategy chalked out very clearly. Aim for the mass 100 cc market with a differentiated product.
RL Ravichandran, Executive Director of Eicher Motors -
Bajaj Auto and Yamaha India are extremely clear on their 'one category at a time approach'. With Bajaj concentrating on taking over the commuter market and Yamaha focusing its energies on the scooter market.
Also Bajaj believes that Hero Motocorp will be struggling a bit, after the breakup with Honda, labour woes and a shrinking market share. So they would like to strike when the iron is hot.
When Bajaj does enter the scooter market it would want to enter and succeed the Pulsar and Discover way. The Boxer 150 which was launched as an ultra cheap motorcycle did not do well in the market.
Mr. Bajaj believes that it is bad strategy to try selling motorcycles 20% cheaper than Hero with very low margins. It is better to bring a differentiated product and ensure margins are maintained.
Rajiv -
Source: Bajaj Auto's Rajiv Bajaj steadfastly pursuing his strategy of differentiation and specialisation - Economic Times
He intends to return to the scooter market only when Bajaj Auto has a 30-40% share of the motorcycle market and the company does not find any scope to grow further in that sector.
With the scooter market the fastest growing category in the two-wheeler market, it does not appear very likely that Bajaj will stay away for too long. But the CEO and MD of Bajaj Auto has his strategy chalked out very clearly. Aim for the mass 100 cc market with a differentiated product.
RL Ravichandran, Executive Director of Eicher Motors -
"One day BAL will have to come back to scooters but I am sure it will be a premium product, and high on fuel efficiency,"
Also Bajaj believes that Hero Motocorp will be struggling a bit, after the breakup with Honda, labour woes and a shrinking market share. So they would like to strike when the iron is hot.
When Bajaj does enter the scooter market it would want to enter and succeed the Pulsar and Discover way. The Boxer 150 which was launched as an ultra cheap motorcycle did not do well in the market.
Mr. Bajaj believes that it is bad strategy to try selling motorcycles 20% cheaper than Hero with very low margins. It is better to bring a differentiated product and ensure margins are maintained.
Rajiv -
"We will think of another category (scooters) when we have a dominant global motorcycle market share...I fear that if we put resources into scooters right now, we will lose out in bikes. Strategy is specialisation, and specialisation means sacrifice,"
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