Bajaj Auto plans to exit the scooters segment

Bajaj Auto plans to exit the scooters segment
PTI
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First Published: Wed, Dec 09 2009. 10 36 PM IST

Change of strategy: Bajaj Auto managing director Rajiv Bajaj says scooters haven’t been selling as well as the company expected. Rajkumar / Mint
Change of strategy: Bajaj Auto managing director Rajiv Bajaj says scooters haven’t been selling as well as the company expected. Rajkumar / Mint
Updated: Wed, Dec 09 2009. 10 36 PM IST
New Delhi: Bajaj Auto Ltd, once known for its scooters which revolutionized the two-wheeler market in the country, on Wednesday said it will exit the segment by the end of the fiscal to focus exclusively on motorcycles.
The company that by and large created the scooter market in the country through its popular ‘Hamara Bajaj’ campaigns in the 1980s and 1990s, today sells just one scooter— the 100cc gearless Crystal.
Change of strategy: Bajaj Auto managing director Rajiv Bajaj says scooters haven’t been selling as well as the company expected. Rajkumar / Mint
“We will exit the scooter market because we don’t see much sense in it...If we are to be a motorcycle specialist, we cannot make scooters,” Bajaj Auto managing director Rajiv Bajaj said at the launch of its 135cc Pulsar, targeted more at the mass-market.
“The scooters did not sell according to our expectations. We are making hardly 1,000 scooters a month now and mostly for exports. Now our focus is on motorcycles,” he said and added that the firm wants to become the largest bike player in the world, without giving any specific time-frame. “One day, God willing, we will be the largest motorcycle company in the world. If we have to be a motorcycle specialist, we have to make sacrifice (in scooter segment),” he added.
According to the Society of Indian Automobile Manufacturers (Siam), Bajaj just sold 154 units of Crystal in November and exported 104 units. Its cumulative domestic scooter sales during the April-November period was 3,356 units and 728 units overseas.
Bajaj said the company has a production capacity of three million bikes annually. “In the 30-million global bikes market, the world’s largest bike maker Honda sells seven million units. We can make three million units. We can double it and triple it by just staying in the motorcycle market,” he said.
As part of its strategy to expand in the bikes segment, the company is developing high-end versions of its Pulsar brand. “We can go for a Pulsar 400cc or a Pulsar 500cc. We are already in the process of developing such bikes and our R&D teams are at work,” Bajaj said without divulging details.
The company has also decided to phase out its model Exceed and has already stopped its production, Bajaj said.
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First Published: Wed, Dec 09 2009. 10 36 PM IST
More Topics: Bajaj Auto | Scooters | Bike | Motorcycle | Crystal |