Bajaj Auto: Discovering the Platina

24 Май 2015 | Author: | Комментарии к записи Bajaj Auto: Discovering the Platina отключены

Rajiv Bajaj is on a high. Bajaj Auto raced the executive segment with the snapping up a share of 21 per cent. rival Hero Honda’s the Pune-based bike maker had managed to get beyond 10 per cent.

it was the entry space that Auto decided to focus on. It had been a strong contender with the CT 100, but TVS Motors’ City was catching up.

In April year, the Platina 100cc was and by September, with sales the 100,000 figure, it had left the behind. Bajaj Auto now has an 47 per cent share in the economy

Why then does the company to move out of the 100 cc segment? It’s simple really. The Platina accounts for nearly 44 per cent of Auto’s motorcycle volumes and with the CT100, the entry now accounts for around 50 per cent of

That’s not really great because the keen competition in the puts realisations from bikes under pressure. managing director Rajiv Margins are certainly lower in the segment as compared to those in the and the 150cc segments. Of course the margins are compensated by higher but not to the extent desired.

The Platina was at Rs 36,000 but the company was forced to the price to Rs 34,000 soon That’s why despite a strong 30 per growth in the topline to Rs 2,400 (Rs 24 billion), in the September quarter, the profit margins slipped 200 basis points y-o-y to 15 per Realisations accounted for just two per of the topline growth, with 28 per arising out of better volumes.

As S Ramnath, an analyst at SSI Securities out, These bikes are in the region of Rs 35,000-Rs 36,000 and the margins for this range are given the pressure from input costs and ad spends.

So Bajaj Auto is looking to do is to get to upgrade. That’s not too difficult in when disposable income and are rising and credit is available at interest rates. Says the Bajaj, who spends a good of time with his RD team or on the track, No doubt the 100 cc segment is today but with new products superior technology and performance we a significant shift.

According to S Sridhar, VP, marketing and consumer research shows buyers are willing to move up the line and want better and performance. Says he, We have that buyers in the executive too want higher levels of and performance and that’s where we got the for making the Discover 125cc a powerful vehicle.

It was this feedback together the patented exclusive Bajaj technology that resulted in a performance bike 125cc DTS-i, one of the company’s success

Bajaj Platina

Bajaj Auto now hopes to the formula by making only bikes — 110cc or — but pricing them enough — so as to tempt to spend a little more. Bajaj, We feel that customers’ point of view, our new will offer a superior than what 100cc offer right now.

125cc bikes retail at Rs 42,000-Rs 44,000 and if Bajaj can them even at around Rs 37, 39,000, it should be able to get

Observes Ramnath, The production for a 125 cc bike is around Rs 28,000-Rs So if the company can sell higher in the 125cc space by lowering the a little, it should be able to operating margins.

В hile to comment on margins, Bajaj he’s definitely looking to cut whether it’s in distribution or by from international markets. He wants to reduce the marketing per vehicle by focusing on key brands.

Not so ago, Rajiv Bajaj’s aim was to Hero Honda to be India’s motorcycle manufacturer.

Today, the ambition has gone way that. As they say nothing like success.

Bajaj Platina
Bajaj Platina
Bajaj Platina
Bajaj Platina
Bajaj Platina
Bajaj Platina
Bajaj Platina
Bajaj Platina
Bajaj Platina


Tagged as:

Other articles of the category "Bajaj":

Our partners
Follow us
Contact us
Our contacts

Born in the USSR


About this site

For all questions about advertising, please contact listed on the site.

Motorcycles catalog with specifications, pictures, ratings, reviews and discusssions about Motorcycles.