The Hindu Business Line : Bajaj redrafts bike strategy, to launch XCD 135 on Jan 21

Mumbai, Jan. 12 Bajaj Auto is putting in place an aggressive strategy for motorcycles which will kick off with the launch of the XCD 135 on January 21. The bike will cost approximately Rs 45,000 (ex-showroom).

The focus on the “middle-of-the-market” bike segment will continue with two more products scheduled to debut in April and July. Simply put, these are motorcycles in the 125cc to 135cc range with price tags hovering in the Rs 40,000 to Rs 46,000 bracket.

There will then be three more motorcycle launches “above and below the market” which could be 150cc plus options like the Pulsar, with prices upwards of Rs 55,000, and 100cc on the lines of the Platina at around Rs 35,000. From the company’s point of view, it is the middle and upper range bikes that will be its focus area in the coming years.

In an interview with Business Line, the Managing Director, Mr Rajiv Bajaj, said that the XCD 135 is a commuter sport bike with DTS-si technology. Its other features include a five-speed transmission, disc brakes, DU bush front suspension, digital speedometer etc.

The XCD 135, which will generate around 10.5 bhp will also boast of high on-road fuel efficiency at 65-70 kmpl at par with 100cc bikes. “We are confident that the bike will do good numbers and will fit in with our vision to build the XCD brand,” Mr Bajaj said.

The bike will roll out of the Waluj plant in Aurangabad, which is already home to its 125cc sibling. Production will begin at the Pantnagar facility by end-February. This relatively new unit already caters to production of the Platina and XCD 125.

Mr Bajaj readily admitted that the XCD 125 did not quite meet the company’s expectations at the time of its launch in September 2007.

“However, it is still part of our learning process at Bajaj Auto and the brand is here to stay. It finally boils down to the faith and commitment we have in the XCD. There is no question of abandoning it ever,” he said.

Asked if the new bike would clash with the already established Discover 135, Mr Bajaj pointed out that the latter was dearer at Rs 50,000 and delivers more power at 13 bhp.

According to him, each of the company’s bike brands was in a niche of its own. For instance, the Discover, Pulsar and Avenger are part of the hefty and robust DTS-i umbrella signifying maximum power at a premium price. The DTS-si range of the XCD, in contrast, stands for younger, trendier and sportier bikes. “As a result, the customer profiles of our motorcycles are also different,” he said.

Motorcycle focus

Mr Bajaj also reiterated that the company would stay focused on motorcycles especially when this product category “still occupied a major chunk of world sales”.

Bajaj Auto is already India’s largest exporter of motorcycles at over 600,000 units annually and has been exploring the option of setting up manufacturing facilities overseas in the Asean region and strategic parts of Africa like Nigeria.

“Our intention is to be a bike specialist in the two-wheeler space. This also makes tremendous commercial sense both from the viewpoint of revenue and profits which are far more substantial. Further, as an aspiring global player, we definitely want to increase our presence in the motorcycle arena,” Mr Bajaj said.

According to him, it is specialisation that is the key in today’s changing times. “The world revolves around specialists and nobody really cares for a buffet any longer. At Bajaj Auto, we definitely do not want to be generalists. The bedrock and cornerstone of our business will be motorcycles,” he added.

Does this mean that the company will not revisit the scooter space where it was the market leader years ago? Mr Bajaj clarified that the company was not going to turn its back to scooters permanently but all this would eventually be dictated by market dynamics and customer preferences which, for the moment, was clearly in favour of bikes.