While for Bajaj, the product will come with a new brand name, the first in nearly a decade adding to its flagship models Discover and Pulsar, for Royal Enfield, the new Himalayan motorcycle will be its first launch in 18 months.
The action plan is to considerably strengthen our position in the executive segment through launch of new brand in the current quarter, said Eric Vaz, President Motorcycle Business, Bajaj Auto.
Profit growth was led by low base in year-ago period. In Q2FY15, profit was hit by one time penalty of Rs 340.2 crore from Uttarkhand government on account of National calamity contingent duty case.
Bajaj Auto will also be launching a new motorcycle brand after a decade. Right now, it has three brands - Discover, Pulsar and the Platina
The company, which sells various popular motorcycle models including Pulsar, Discover and Platina, currently has a market share of 18 percent in the domestic market.
Three factors resulted in Bajaj Auto's market share falling off the cliff. Here's how the company is making a comeback.
Homegrown automaker Bajaj Auto said its May monthly sales stood were down 2 percent to 3.45 lakh, compared to 3.51 lakh year-on-year.
Watch Rajiv Bajaj in conversation with Overdrive about the Discover brand.
Investors continued to sell shares of Bajaj Auto on Friday after brokerage house CLSA maintained underperform rating on the stock, citing structural as well as cyclical headwinds. The stock fell more than 2 percent intraday, in addition to 1 percent loss in previous session.
With its market share falling from a consistent 24 percent a few years back to 18 percent now, it appears Bajaj Auto has decided to tweak its earlier strategy of focusing on select models.
Analysts are not very enthused about the stock. Macquarie maintains underperform rating with a 12-month target price of Rs 1850 per share on worries that headwinds due to rising competition in motorcycles.
The Pune-based company had earlier raised prices of its Pulsar model range by Rs 1,000 at the end of festival season this year.
In an interview with CNBC-TV18, Rajiv Bajaj said the auto market is finally seeing signs of bottoming out and that the company is looking to add to its 19 percent market share with new models such as its recently-launched next-generation Discover 125cc.
Rajiv Bajaj, managing director, Bajaj Auto said a steep decline in volumes, (-10 percent in motorcycles and -25 percent in three-wheelers), and the company not passing on higher input costs of its upgraded three-wheeler model were the main reasons for the lackluster quarterly performance.
A Moneycontrol.com poll showed that between the two - Hero Motocorp and Bajaj Auto, the latter was a better play in the two-wheeler segment now. Sixty eight percent of the 280 respondents preferred Hero.
Bajaj Auto is hopeful of recovering its market share in the two-wheeler segment with new launches lined up. It is also optimistic on better exports going forward.
Bajaj Auto is launching 6 new variants of the Discover motorcycle and that coupled with a pickup in rural demand post good monsoon rains should boost domestic demand in the second half.
The company‘s first quarter earnings matched market expectations, even though volume sales declined. Bajaj said his company had not lost any material market share on a year-on-year basis, adding that it had a 46 percent market share in the sports bike segment.
The India's second largest motorcycle maker is expected to report a marginal drop in revenue in April-June quarter, but margins will be boosted by price hikes, favourable currency hedges and increased export realisations.
Rajiv Bajaj, MD, Bajaj Auto in an interview to CNBC-TV18, says that the company is betting big on the launch of six versions of the Discover in July plans to focus on exports to boost revenues and increase market share.
Rajiv Bajaj, Managing Director of Bajaj Auto told CNBC-TV18 that November sales have met expectations. He informed that Discover and Pulsar contributed 68% to the two-wheeler sales figure.
Bajaj Auto sales in November declined 1 percent year-on-year to 3.72 lakh units, due to sluggish demand for motorcycles and a slip in exports.
Rajiv Bajaj, managing director, Bajaj Auto told CNBC-TV18 that October 2012 was the second best month ever in our history of the company.
India's largest two-wheeler maker Hero MotoCorp's second quarter net profit declined 27% from a year ago (down 28% sequentially) to Rs 441 crore, hurt by overall slowdown in sales. However, demand has since picked up from the beginning of the Navratra period, it said on Tuesday.
Bajaj Auto's total sales in July slipped 5% year-on-year to 3,44,150 units amid sluggish demand for motorcycles, especially the premium segment, where the Pune-based company is a dominant player with its Pulsar range. Three-wheeler sales also continued to be slow.