On the launch of new Discover 125cc, Bajaj Auto’s managing Director Rajiv Bajaj revealed Bajaj Auto’s future plans. He mentioned that the year 2012 will be the year of investment for Bajaj Auto. The company is developing all new breed of its Pulsar and Discover range of motorcycles which will be launched in the second half of the financial year. Bajaj Auto will also launch Boxer, KTM Duke 125 or 200c in upcoming months. Beside this, he also mentioned that Bajaj Auto will launch its much awaited small car with the amazing price of 1,50,000 and 30 Km/liter by 2012. Speaking about financial year 2012 volume growth, he said he expects 20% growth in the financial year 2011-12.
The new Pulsars and Discover are being developed on a new platform and will have next generation technology. These new Pulsars and Discovers will have very little or no similarity with the present generation models. After the launch of new Pulsars and Discovers the company will replace some models and will discontinue some models. After the launch of next generation Pulsars and Discovers, Bajaj Auto expects its market share to increase up to 40 – 50 % from current 27% in the domestic market.
The company will re-launch its Boxer brand in the month of July 2011. Boxer will be targeted to the rural customers where Hero Honda Splendor is market leader. Boxer will be positioned as utility motorcycle. The reason behind re-launching Boxer is rural segment is not ready for high priced Discover brand. Currently, rural segment commands 35% market share of total domestic motorcycle sales. The new boxer will have more than 100cc engine and will be priced around best seller splendor.
The company will also launch its much awaited KTM bikes at the end of the year. But it is yet to be decided that whether it will have 125cc engine or 200cc engine. The company has already started manufacturing KTM bikes at its Chakan plant in Maharashtra and has shipped around 1,000-2,000 bikes to the European market, where the Duke 125 has been launched at price of Euro 4,000. Currently, Bajaj auto owns 38.09% stake in Austria based KTM Company via Bajaj Auto’s 100% subsidiary Bajaj Auto International Holdings BV Netherlands. KTM has sold 65,000 bikes in 2010. It is also mentioned that KTM is more important to the Bajaj Auto in order to enter markets like Brazil, Malaysia and Thailand where brands like Honda and Yamaha are already dominating and these markets are mature. KTM will be Bajaj Auto’s entry ticket to these mature markets,
The new range of bikes is a part of the company’s target of almost doubling its sales to 7-8 million units from 3.8 million units a year at present. The company hopes to increase its global presence to 30% from current 10% within next 3-4 years.
