New Delhi:After ruling the entry level segment with its 100cc motorcycles, the country’s second largest two-wheeler maker Bajaj Auto Ltd. has decided to exit the segment owing to relatively lower margins.
Bajaj Auto Managing Director Rajiv Bajaj told PTI the company is developing a new platform for a new bike as it has decided to move away from the 100cc segment.He said the decision would also mean phasing out of its entry-level success story ‘Boxer´.
The company’s decision to exit from the 100cc segment is driven mainly by the increasing sales of its models such as ‘Discover´ and other DTSi platform products. It is also on account of the relatively lower margins from the segment, which accounts about 45 % of the company’s sales.
Bajaj Auto has already finalised the product design and specification for a new motorcycle platform and is expected to do a pre-mass production trial in the first quarter of the fiscal 2007-08 and introduce it in the following quarter.Bajaj had earlier said the company’s strategy would be to woo customers from the entry level segment to higher executive class by offering better products at affordable prices.
The company is expected to commence motorcycle production from its new plant at Pantnagar in Uttarakhand by April this year and plans to ramp up production capcity to one million per year within the fiscal 2007-08.