Bajaj Auto is stepping up product development to make up for the delay in FY21 and has lined up multiple launches for the year, including motorcycles sporting new platforms.
The Pune-based company has done three launches, so far, in the year and aims to deliver new models over the next six months, a top company official has told said to analysts.
“We are accelerating our product programmes so that it recovers some of the lost ground of last year. We have already made three introductions like the CT110X and the Pulsar NS125. Within six months, we will be putting out newer platforms and newer variants and this will be a significant thrust in FY22," Bajaj Auto executive director Rakesh Sharma said.
Among the segments, the motorcycle-specialist will be targeting the so-called growth category, which has been the 125cc segment. The 125cc has grown significantly in recent months thanks to the Pulsar 125 portfolio. Bajaj’s market share in the 125cc segment increased to 19 percent by end of Q4 FY21 from 7 percent in FY20.
“We are going to be looking at pockets within the 125cc segment,” Sharma added without giving details.
Bikes powered by an engine bigger than 125cc now generate 60 percent of Bajaj’s domestic volume compared to 46 percent in FY20. To keep up the trend of premiumisation, Bajaj has decided to go big on the 250cc segment also.
“We are looking to build the 250cc segment because we believe the quarter litre segment is something that the 150cc segment customer is ready to jump to,” Sharma added.
Bajaj Auto added the 250cc engine in March 2020 to the Dominar family, bringing down the entry price of the model. Priced at Rs 1.7 lakh (ex-showroom, Delhi), the Dominar 250 is one of the most affordable models in the 250cc range in India. Dominar also has a 400cc variant.
“A noteworthy progression, though small in terms of volume, but big implication from future product development point of view, is the performance of Dominar 250 which has made a very confident start,” Sharma added.
Bajaj Auto closed FY21 with a decline of 13 percent in domestic sales to 1.80 million units as against 2.07 million units sold in FY20. The fall was in line with the rest of the industry, which contracted by 13.35 percent during FY21.
Bajaj holds a 12 percent market share in the domestic two-wheeler category and a 18 percent market share in the domestic motorcycle category, as per data shared by the Society of Indian Automobile Manufacturers.