Business Daily from THE HINDU group of publications
Sunday, Nov 26, 2006
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Business Daily from THE HINDU group of publications Sunday, Nov 26, 2006 ePaper |
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Corporate
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Outlook Marketing - Strategy
Sudha Menon
Why the change Feels that the 100 cc 4-stroke motorcycle is as outdated today as 150 cc 2-stroke scooters were 10 years ago Confident of moving a majority of its customers to a different product platform
BAJAJ PLATINA
Pune , Nov. 25 Two-wheeler major Bajaj Auto is gearing up with plans to replace the 100 cc Platina model with a completely new product platform currently under development. The company will continue with the 100 cc Platina model but has decided that it will cease to manufacture this 100 cc, 4-stroke motorcycles in the next 2-3 years, the Managing Director, Mr Rajiv Bajaj, told Business Line .The Platina, incidentally, is currently averaging sales of 1-lakh units every month. "This is because we believe that the 100 cc 4-stroke motorcycle is as outdated today as 150 cc 2-stroke scooters were 10 years ago. We are confident that we can move a majority of the customers to a different product platform," Mr Bajaj said.
Greenfield plant
Meanwhile, work at Bajaj Auto's Greenfield plant at Pantnagar, Uttaranchal, is at an advanced stage with the company geared up to roll out the Platina model from April, despite the Government recently relaxing the deadline for companies to commence production, to avail of major tax sops. The Uttaranchal plant is expected to give the company large volumes, which industry analysts say, will help it make easy inroads into markets in the North that is currently dominated by rival Hero Honda. "In terms of production capacity we have two milestones, to achieve a rate of half-a-million vehicles a year, and next one million a year and we should be able to achieve this within 24 months of start up", Mr Bajaj said, adding that introduction of additional models and further increase in capacity will be finalised when these milestones have been achieved. He declined to give details of investments on the Uttaranchal project. The new plant, meanwhile, is expected to set a new standard for productivity and low-cost of manufacture not just in India, but also globally with the company adopting lean structure and other concepts such as core process orientation and integrated supply chain network for the operations. Sixteen of the company's key vendors have set up their plants around the mother plant. While the Platina will be the first to roll out of the plant, the company will eventually replace it with a completely new product based on a new platform currently under development by Bajaj Auto's R&D.
More Stories on : Outlook | Strategy | Two/Three Wheelers | Bajaj Auto Ltd
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