Bajaj Auto to roll out two new bikes for commuter segment

Though the names of the new bikes being planned by Baja Auto are not known, it is confirmed that the company is working towards creating two new bikes for the fast growing commuter segment, reports Dow Jones newswire service.

 

"We will launch both models either under the Discover or the Platina brand," S. Sridhar, chief executive of Bajaj Auto's two-wheeler business, told Dow Jones Newswires by phone recently. However, Sridhar declined to give details about the engine specifications or the likely prices of the new vehicles. He said, "The commuter segment is doing well. We need more models from this segment."

 

Incidentally, a DNA newspaper has reported that Bajaj Auto is looking establish an assembly line there to avoid the duty barrier. A senior official told the aforesaid newspaper that it would be comparatively easier to enter the Chinese market as the vendor base is in place only the engine will have to be taken there for local assembly. It was reported earlier that Bajaj Auto had outsourced some of its operations to China, where the kitting of the bikes is done before they are assembled at Chakan, Maharashtra, with the engines being made at Aurangabad plant.

 

Kevin Dsa, vice-president (finance), Bajaj Auto, said to the aforesaid business daily, "We have looked to consolidate our position in one market before seeking a new one. When we touched a 35 per cent market share in Sri Lanka and Bangladesh, we sought the African market. For now the African market is yielding good numbers, with close to 35,000 units sold monthly, but when it reaches a saturation point, we will consider China and Brazil. Our export story will remain robust this way. In the next 6 months to one year we will sell around 10,000 motorcycles in Nigeria alone.

 

Rakesh Sharma, chief executive officer (international business), told DNA, "The Brazilian market is large and attractive, but has many entry barriers in terms of competition. The Japanese, especially Honda, are very strong there. They have a strong dealership network, after sales service and high localisation. We need to tackle these barriers, but we think that we have a right product mix to cater to that market."