BackFocus on bikes market, no scooters: Rajiv Bajaj
Focus on bikes market, no scooters: Rajiv Bajaj
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New Delhi: Bajaj Auto chairman Rahul Bajaj may want the firm to re-enter the scooter segment considering the revival of market, but his son and managing director Rajiv Bajaj says at the moment the company will focus only on bikes.
“At the moment, we have a clear and sharp focus -- the global motorcycle market," Rajiv Bajaj said.
He was responding to comments made by the Senior Bajaj that it made sense for the company to manufacture scooters which can give the firm a market share of 20% and a reasonably good EBIDTA.
When asked if the company will start making scooters again, Rahul Bajaj said “maybe", but directed the question to his son Rajiv, keeping his stated position that he no longer took decisions.
In December 2009, the company had announced that it would stop making scooters by end of 2009-10 fiscal, thus bringing down the curtains on ‘Hamara Bajaj´, which revolutionised the two-wheeler market in the country.
At that time, Rajiv Bajaj had said the company didn’t see much sense in making scooters as the segment didn’t sell according to its expectations.
“If we are to be a motorcycle specialist, we cannot make scooters," he had said then.
Since then, the scooter market has witnessed significant growth, led by gearless scooters from Honda Motorcycle & Scooter India, which is the market leader in the segment now.
In the April-January period this fiscal, the Indian scooter market has witnessed a growth of 46.57% at 16,97,204 units as against 11,57,902 units in the comparable period last fiscal, as per Society of Indian Automobile Manufacturers Association (SIAM) data.
Bajaj Auto on the other hand has focussed its attention on motorcycles, offering a range of models such as Discover, Pulsar and even increased stake in Austrian bikemaker KTM Power Sports AG to nearly 38.09% as it looks to expand presence globally.
Bajaj Auto and KTM have been jointly developing products and the first of the co-developed products, KTM Duke 125, will hit European markets in 2011. The KTM models are supposed to be launched in India during the second half this year.
In the April-January period this fiscal, the company sold 19,89,377 bikes in the domestic market as against 14,11,259 units in the same period last year, up 40.96 %.
Bajaj Auto’s export during the period has also grown by 35.78% to 8,36,617 units as against 6,16,135 units in the same period an year ago.
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