Bajaj Auto's market share in the domestic motorcycle market may have inched up to 18.5% in the October–December quarter but subdued sales of the Pulsar, Platina and Discover could see it under pressure again.
The Pune-headquartered firm's market share stood at 17.9% in April–June quarter and 17.7% for the July-September period of FY16. However, the share perked up last quarter thanks to a 12% rise in volumes in December driven up by good sales of the Avenger and CT100.
The Avenger range of leisure bikes, launched in late October and priced in the Rs1 lakh range, did well to sell 13,722 units in November and is understood to have done well in December too.
Bajaj is the market leader in the premium motorcycle segment (engine capacity more 150cc) with a market share of more than 45% but the performance of the Pulsar range along with models like Platina and Discover needs to improve for it to hold on to market share.
Between April and November the sales of the Pulsar range of motorcycles were flat at 4,44,543 units while those for the Discover in the executive segment fell by about 60% y-o-y to 171323 units and those for the Platina also decreased by 42% y-o-y units to 2,06,834 units.
In March, 2015 the company launched a refreshed version of Platina with electric start to gain volumes in commuter segment. According to Abdul Majeed, Price WaterHouse Coopers, subdued demand in the rural markets has negatively impacted volumes of Platina and Discover. “Increasing volumes of Royal Enfield must have adversely impacted the Pulsar’s fortunes in the above 200cc motorcycles segment,” Majeed said.
The Pulsar range of bikes constitutes around 32-35% of the total volumes of Bajaj and the bulk of the volumes in the premium space come from the 150 cc Pulsar motorcycle.
Royal Enfield on the other hand has been growing substantially in the premium segment on the back of models like Classic 350, Bullet Electra 350 and Thunderbird 350.
Bajaj Auto is expected to launch a motorcycle in the executive segment in February which is likely to compete against Hero Splendour. In an attempt to attract customers Bajaj launched the refreshed version of CT 100 and Platina electric start in March last year.
During the April–November period of this fiscal year, Bajaj auto managed to sell 4,23,926 units of CT100, which compensated for the loss in volumes from Platina, Discover and flattish performance of Pulsar.