source:cartradeindia

“Humara Bajaj” has been known to all Indians for as long as they can remember. Now Bajaj Auto is planning to stop its scooter production and concentrate on motorcycles. It comes as a surprising revelation that Bajaj scooters may fade into oblivion, as the company has confirmed that it will be exiting the scooter segment soon and concentrate only on the motorcycle segment.

“This is a definite watershed moment, because it’s almost like detaching ourselves from what constitutes middle class India, and the set of values that constituted middle class India,” says Santosh Desai, MD and CEO of Future Brands and a marketing and advertising expert.

Lowe India created the first jingles of Humara Bajaj commercials. Now the CEO of the agency, R Balki, says, “There was a time for horse carriages, and there’s a time for bikes. Today, the bike symbolises middle class India.”

Bajaj’s scooter Chetak was once the highest selling scooter in the world. It had waiting period of years but then things changed when motorcycles surged and later when Honda came out with automatic and gearless scooters. Today, Honda sells nearly 6 lakh units in a 10 lakh units overall market. The Bajaj company has already stopped production of Chetak since past three years. Now it will stop production of its Kirstal series by the end of current financial year.

Rather they decided to stop, they were forced to stop due to obvious reason of Honda dominating the Scoots segment.

But who knows after 2 years what bajaj will announce.

Hamara Bajaj, leaving bulandh Bharath? I think it is an excellent cover-up to hid the fact that have created a new segment in motorcycle to test their 4 valve engine. Will they actually exit scooters? There is talk of sporty scooters coming from Bajaj. Await another U-turn!

This was very serious and though decision for the BAL. they have sold only 154 scooters till date in current fiscal year. only 54 scooters they could able to sell in domestic market out of total sells. So, guys this was the very practical step, which they have taken.

but, on the other side Honda continues to concentrate on scooters as they have learned, still 10-15% growth at the bottom line in Indian 2 wheel market.

So, according to BAL's new strategy;

1. they have decided to use the 'Boxer' brand for low-cost motorcycles which are being manufactured in China and exported to various countries in Africa and Brazil. The Boxer brand has no presence in India.
2. In executive segment there will be only XCD & in premium segment Pulsar. &
3. the KTM brand would house premium motorcycles.

A new road for Bajaj scooters

Refreshing Old Memories on Bajaj Super !

Bajaj Scooter will remain an Icon in the automobile industry in India. And I am fortunate, i too was part of that icon, really enjoyed my days on my Bajaj Super ( 1996 - 2001 )

Buland Bharat ki Buland Tasveer ....... Hamara Bajaj .....

Of the global 50 million 2 wheeler market, m/cycles constitute 27 million and scooters 23 million. in terms of profitability the ratio is further skewed towards bikes say (60:40).

Of the 27 million bikes Honda is No.1 with ~ 7 million bikes (which includes Hero Honda too ~3.5 million), Bajaj with it's current portfolio is targetting 3 miilion bikes which would make it the global no.2 bike maker. So even at 3 million the potential to grow in the bike market is enormous for Bajaj as the market is at 27 million with better profitability too!

Now instead of spending time in aking scooters where Bajaj is admittedly struggling (154 scooters!!) it is choosing to focus on the area where it is stronger, there is more growth at better profits.

Now would you really fault the strategy?

PS: most of the dope has been discussed on NDTV Profit's Big Fish.. do watch it if possible..

they exit and they re-enter its only matter of time for bajaj
by any chance if their all new products were hit and sells well
they will definitely re-enter and may be with naming chetak