Bajaj revs up with CT 100, Platina

Barely a couple of months ago, Bajaj Auto launched an entry-level motorcycle without too much fanfare. Interestingly, this was a brand which was a familiar sight on Indian roads some years ago and had done good numbers at that point in time.

The CT 100, which is now back, made a quiet re-entry in February and demand for the bike has increased rapidly from 5,000 units to 35,000 units in March. Sales this month are expected to touch 50,000 units which would mark a ten-fold jump in less than 100 days of its launch.

Likewise, the new Platina, which made its debut in January, has seen monthly numbers averaging 35,000 units. Along with the CT 100, Bajaj Auto’s entry-level motorcycles (in the price range of Rs 35,000 to Rs 45,000) are poised to do 85,000 units a month.

Rajiv Bajaj, Managing Director, has every reason to be pleased considering that this translates into a million units annually. This good news also comes at a time when his company’s motorcycle sales in the domestic market have been under some pressure lately.

According to Bajaj, a similar picture is emerging at the company’s upper end for the Pulsar where the recently launched RS 200 will be joined by another brand in April.

With a thrust being planned for the Avenger too, Bajaj says this segment will soon see sales jump from the present level of 60,000-odd units to 80,000 units a month. Once again, this will mean a million bikes annually where growth at the upper end will see better sales and profitability in the coming years.

Bajaj believes these enhanced numbers will be in place by the first half of 2015-16. The challenge would be to sustain this momentum and take it to the next level.

What has been especially encouraging is the fact that there has been no big bang advertising to herald the entry of the Platina and CT 100.

This clearly shows a comfortable customer connect with these two brands which can hopefully get stronger from now.

The most critical void, though, remains the Discover and the company’s next task on hand would be to replicate the success of the entry and upper-end in the mid-size commuter segment. This is where the Discover and, perhaps, a new brand could do the trick.

According to Bajaj, all this clearly shows that the company can still manage to draw more volumes from bikes and not scooters which is the commonly held view.

As he says, this is simply because “bikes still outsell scooters 2:1, are far more profitable and Bajaj Auto has a strong tailwind with bikes”.

In terms of numbers, of the 800,000-odd bikes sold each month in India, the company’s share is around 150,000 units. Simply put, it has a larger play with (the remaining) 650,000 bikes rather than scooters whose numbers average 300,000 units each month.

Rajiv Bajaj has constantly maintained that scooters are just not on the radar simply because it makes more sense to be a specialist in the motorcycle space.

From the company’s point of view, potential markets extend beyond India which also puts in perspective its exports which account for nearly 50 per cent of production. The coming together with KTM as well as the alliance with Kawasaki will only sharpen this focus on motorcycles.

The positive response to the CT 100 and Platina vindicate this stance and it is now up to Bajaj Auto to keep the numbers ticking. It is already a well established player in the premium end thanks to the Pulsar. With more attention now planned for the Avenger, this segment will also see the company consolidate its space.

It is in the mid-segment of commuter bikes where the Discover promised plenty initially but has not quite lived up to expectations.

The script started on the right note in 2009 with the launch of the Discover 100 but observers believe that a mass proliferation of models which followed did not quite help the brand’s cause.

It will be interesting to see what Rajiv Bajaj has up his sleeve and if the Discover can replicate the success of the CT100 and Platina.