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Bajaj Aims to Become Largest Seller in the 125cc Motorcycle Segment

Bajaj Auto, the nation’s second largest manufacturer of two-wheelers are looking at becoming the highest seller in the 125cc motorcycles segment, in spite of focusing on the performance segment over the last couple of years. The 125cc motorcycle falls in the economic commuter segment, a segment which is ruled by the reigning Hero Honda company. According to a recent report published in ‘The Business Line’, Bajaj’s recent product, the Discover 125 is part of the company’s strategy for ensuring  leadership in the commuter segments upper end. The report had Bajaj Auto’s Rajiv Bajaj, quoting that though the Hero Honda brand is quite popular in the segment of 100cc bikes, it does not extend to the 125cc bike segment. This is the segment, where Bajaj has an opportunity of striking it with the Discover 125.

The report also mentioned that the duo of Discover 150 and 100 average around 1.25 lakh units every month. Of these the latter alone accounts for 85,000 units. The report said that the decision of launching the 100cc before the 150cc version was a deliberate move on their part. This was an intentional ploy to create a huge difference in the segment for commuters and it has showed them that 40,000 customers have now moved on the far side of mileage every month. They gradually expect this number to increase in size by the next five years, however they did not want to wait that long. Bajaj also added in the report, that they are aware that their Discover 150 will represent a big jump in this commuter space, and that this was the right time for an in-between option.

The report meanwhile mentioned that the new ‘Shine’ from Honda, India is the leading player in the category of 125cc bikes, with more than 25,000 units in a month. The Super Splendour and Glamout of Hero Honda, also form a part of this segment. Bajaj said, that they are personally pleased if, the 85,000 monthly units figure for Discover 100 would totally shift to their 125cc version. If more 10,000 customers were to be added from that of Discover 150 bikes, they will secure their fate in this segment. Bajaj also said that over a period of time, customers will start gravitating towards the 100cc bike segment, and they are patiently waiting for these customers to do so. They feel that stepping out now, will be a big mistake.

Their early XCD 125 bike model, which was conceived almost five years back, was supposed to do this same thing. They did not know, then, what was the difference between a brand and a product. They admitted to doing everything right with the XCD model, except for its brand.

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