In a bid to consolidate its position in the executive segment of the domestic motorcycle market after the less than expected performance from the Discover range of motorcycles, Bajaj Auto launched the latest motorcycle know as the V. Though the price of the vehicle is not known, the top management indicated that the company has intentions to sell around 50,000 units of V in the near future.
The new offering from Bajaj will be manufactured at the Chakhan plant, according to Eric Vaz, president, (motorcycle business), Bajaj Auto. The Pune based company is also aiming to create a new segment called the solid commuter segment with the launch of the motorcycle V.
“Our objective is to sell 50,000 units of this vehicle per month which is 10% of the volumes in the segment. The size of the executive segment is 500,000 vehicles per month and certainly we are capable of achieving this feat with this bike” added Vaz.
This can be termed as Bajaj’s second attempt to become a strong player in the executive segment after the discover range of motorcycles failed to create a substantial rise in volumes. At present Babaj Auto sells 20,000 units of Discover motorcycles every month.
“I do not think this motorcycle will cannibalize the volumes of Discover as they are very different in terms of looks and feel. We cannot prevent small number of cannibalization as there will be customers who will move on to this this product,” explained Vaz.
Bajaj Auto, which is the market leader in the above 150 cc segment because of the Pusar and Avenger range of sports and leisure motorcycles, is now trying to consolidate itself in other segments as well. With success of CT100 – an offering in the entry level segment – Bajaj is now trying to replicate the same with V in the executive segment.
With the pulsar volumes remaining flat in the first eleven months of the fiscal and less than average performance from the Discover motorcycles, Bajaj Auto is banking on V to increase its overall market share. In the first nine months of the fiscal (April – December), Bajaj Auto did not see any substantial rise in the over all market share and it remained within 18% – 18.5%.
Rajiv Bajaj, managing director of Babaj Auto, said that, out of nine lakh motorcycle that are sold every month, Bajaj Auto has leadership position in segments which command monthly volumes of four lakhs. The company now wants to focus on segments which command volumes of the rest five lakhs.