Bajaj Auto says that the company is facing more heat from Indian manufacturers, in terms of pricing in the export markets, than its Chinese competitors. Hero Motocorp and TVS Motor Company have increased the competitive intensity as they too aim to grab a significant chunk of export markets such as Africa, Latin America and Asia than ever before.
Speaking to analysts Rakesh Sharma, Chief Commercial Officer, Bajaj Auto said:
There is a little bit of a pricing pressure continuously from the Indian competitors. The Japanese and Chinese have not really changed their strategies too much. I know that Yamaha has sort of been very aggressive in 1 or 2 Latin American countries. But we don't see that much change. But, yes, we are finding consistently TVS and Hero underpricing compared to us in almost all the markets.
Earlier this year, Bajaj Auto had shared its plan to have sales, design and R&D personnel in Thailand. An assembly plant in Thailand is aimed to work around tariff and offer products at competitive prices. The company has also appointed a new distributor in Mexico and has started constructing a CKD facility in the country. The new factory in the country would have a capacity of 50,000 units a year.
TVS Motor, too, has been expanding its reach in the international markets. The Chennai-based brand launched the HLX 150 and the Stryker in the Mexican market in September this year. In the same month, the company launched the Ntorq 125 and Apache RR 310 in Nepal. Expanding its reach in the Latin American international market, TVS Motors appointed Beta Motor as its exclusive distributor in Argentina.
A Hero Motocorp spokesperson said:
We do not wish to comment on what an industry peer has said... Our products are priced in line with our profitable growth strategy and as per the segments and global geography they operate in. Product pricing is also largely determined by market dynamics and never against any particular single manufacturer.
Meanwhile, Bajaj Auto clocked its highest-ever monthly sales in the Indian market last month. The combined sales from the two-wheeler and commercial vehicle business crossed half a million mark in October. The domestic business witnessed a 29 per cent growth (3,19,942 units vs 2,47,210 units) while the exports saw a 38 per cent jump (1,86,757 units vs 1,35,254 units) YoY in October.