IAB Report – Bajaj once again rules out participation in the flourishing scooter segment

Posted on: Aug 11, 2014 - 6:54pm IST

Bajaj wants to be a global specialist in motorcycles rather than taking another stab at the scooter segment.

It’s ironical that Bajaj, the company which put millions of Indians on two wheels with its scooters, has turned its back on the rapidly growing segment.

On the sidelines of the Bajaj Discover 150′ launch, Mr. Rajiv Bajaj, Managing Director, Bajaj Auto, stated that the firm is not in the market for scooters or mopeds, but to be a profitable global brand.

Bajaj Kristal scooter
Bajaj is looking to grow the Discover and Pulsar brands rather than entering the scooter segment. [Note: Image of Bajaj Kristal added for illustration purpose only.]
According to the company’s statistics, motorcycles contribute to 73% of the Indian two wheeler market in terms of volume and 80% in terms of value/price and profit.

Instead of automatic scooters, Bajaj will focus on strengthening its Discover and Pulsar brands throughout the globe. The company is also bullish about the prospects of its Austrian subsidiary KTM.

Mr. Bajaj added that rather than venturing into new sub-segments created by the rivals (like the new Honda CD 110 Dream which opened up a new entry level commuter segment), the company would stick to its strategy of building better bikes and brand image.

In its defence for not involving in the Indian scooter market, Mr. Bajaj cites the good performance of the company’s motorcycles in the export markets. Nigeria, Colombia, Bangladesh and Philippines are the top 4 export markets and the brand claims to have leadership in all these countries.

Bajaj’s move away from the scooter segment comes when rivals like Honda, Yamaha, TVS, Hero and Suzuki are investing heavily in the space.

Next would you like to read more about the , or more about Bajaj?

4 thoughts on “IAB Report – Bajaj once again rules out participation in the flourishing scooter segment

  1. Konark says:

    Yes he is comedian and going to drown in infinite discovers.

    Reply
  2. Sandeep Kulkarni says:

    Mr. Bajaj is talking about building the brand. In reality Bajaj is the cheapest (in quality) brand. They manufacture third class bikes. Just start a Unicorn or any bike & start a Pulsar. The difference is clear. Also if he is concerend about quality then why the silencers of most Bajaj bikes corrode ? None of the other manufacturers experience such quality issues. I used a Pulsar but sold it because of the shabby quality. Then bought a TVS Fiero. Excellent bike. Bajaj ka Band Baja bajne wala hai…

    Reply
  3. Gaurav says:

    Scooter market is flourishing. It’s silly to ignore a category when you are struggling to keep your market position.

    Reply
    1. Dr. Nayak says:

      This guy didn’t create the company but got it just by being a blood relative.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

About the Author
Nithyanandh
Nithyanandh K

As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!