New Delhi: Reeling under the pressure of an industry slowdown, country’s second largest two-wheeler maker Bajaj Auto Ltd (BAL) on Tuesday reduced prices of its various motorcycle models by up to Rs3,000 to revive sales fortunes.
The reduction reflects a correction in prices post Finance Minister P Chidambaram’s proposal of cutting excise duty on two-wheelers to 12% from the earlier 16%. The company has, however, reduced prices over and above the excise duty benefits to revive sales.
“The excise duty cut roughly translates into a price correction of Rs1,000 per unit but we have reduced prices more than the benefit on certain models,” said Amit Nandi, general manager marketing, BAL.
Prices of BAL’s entry-level 100cc model Platina have been reduced in the range of Rs2,000-Rs3,000 and it would now be available for Rs30,000 (ex-showroom).
“On certain Platina variants the price cut is Rs2,000 but most of its variants would see a reduction of Rs3,000,” Nandi said.
Prices of Discover (125cc and 135cc), Pulsar (150cc and 180cc) and automatic scooter Krystal have been reduced by Rs1,000. BAL is not offering any price cut on Pulsar 220 DTS-Fi.
The company’s 125cc XCD DTS-Si (kick-start variant) would now cost Rs1,500 less and would be available for Rs37,500. It has, however, not cut the prices of the self-start variant of XCD.
BAL was pegging XCD as its main weapon to exit the low- margin high-volume entry-level or 100cc motorcycle segment, which accounts for 60 per cent of the overall bike sales in the country.
BAL’s motorcycle sales declined 8% to 1,58,662 units in February this year, against 1,71,780 units in the same month last year.
The company had launched the bike in September 2007, and had targeted to sell 70,000 units a month from November onwards. However, due to an overall slump in the two-wheeler industry, BAL is managing only half of of its original estimates with XCD sales touching close to 35,000-mark.
Though BAL has been claiming that customers have been moving away from the 100cc segment, sales of its 100cc model Platina have not been much affected due to the industry slowdown with the company managing sale of 50,000-60,000 units of the model in a month.
“We are still selling 50,000-60,000 units of Platina’s in a month, while XCD sales are in the mid 30,000. The company is comfortable with XCD numbers as we have managed to capture 20% share in the 125 cc segment,” Nandi said.