Bajaj Auto, the Indian automaker is introducing new budget bikes like Bajaj Platina and Bajaj CT100 to compete against its all-time rival Hero MotoCorp, thus admitting Bajaj’s Discover range of bikes failed to match the company’s expectations.
Bajaj Auto is country’s third-largest 2 wheeler seller. Bajaj Platina and Bajaj CT100 are some of the lowest-priced motorcycles in the 100cc segment which is priced between Rs 36,800 and Rs 39,700. Comparing Hero MotoCorp’s Splendor and Bajaj’s Discover: The Hero MotoCorp’s Splendor, India’s largest selling 100cc bike costs Rs 45,750 while Bajaj’s 100cc Discover is Rs 47,711.
Bajaj Platina and Bajaj CT100, now in budget bike segment
Though Bajaj Discover 100cc gave Hero MotorCorp’s Splendor a run of its money during the start days of bike’s launch, positioning itself to be as a high mileage alternative, it lost all the fuzz eventually when Bajaj Auto launched several other bike models using the same brand. The market share of Bajaj Discover reduced to 10 % from 14% after a 33% slide in volumes in 2014.
President of Bajaj Auto, Mr Eric Vaz speaking to media said,
We would like to do much more in the 100cc end of the market. We see a lot of opportunity in changing things in the market. CT100 was one of those things and we believe that for the 100cc customer which at an average this year is 5 lakh bikes a month, we believe we need to have two brands – Platina and CT100. The Discover will continue there but at the top-end of the 100cc segment.
Bajaj Auto has however ruled out that any step back or withdrawal of Discover model from the entry range would potentially harm the brand from the rest. Bajaj Discover 100cc though the price can creep upto Rs 50,700 would continue to take part in premium 100cc segment. With the introduction of Bajaj CT100 and Bajaj Platina, Bajaj Auto aims to gain a greater share of 50% in the dense 100cc segment with volumes shooting upto 95,000 to 100,000 units per month.
Eric Vaz further added,
The 100cc segment gets split into two categories – entry level and other. The entry level bikes is around 200,000 bikes per month while the ‘others’ are 400,000 bikes a month. We used to have 23 per cent share in the entry segment and we hope to take that market share to 50 per cent
The M1 segment of bikes as classified by Bajaj Auto are 100cc bikes with maximum price of Rs 44,000. Bajaj Platina, CT100, HF Deluxe, HF Dawn and TVS Sport bikes also fall in this category. The next upper section which is M2 segment are also 100cc bikes whose prices range between Rs 44,000 to Rs 51,000. Bike models like Discover, Splendor and Passion, Honda’s CB Twister and Dream Yuga comes under this segment.
Bajaj CT100 is a 11-year old brand which is now being brought back by Bajaj from hybernation.
Bajaj’s renewed push on Bajaj Platina, was not so aggressively pushed in the market as compared to Discover. Bajaj Platina’s new offering with an electric start option (it was available in kick start only) was introduced in March. The equivalent Electric start version was already being offered by Hero Motor Corp’s HF Deluxe and TVS’s Sport.
Watch New Bajaj Platina Electric Start TV ad.
Source: Business Standard