Bajaj auto’s lifelines are the discover and Pulsar brands. The man at the helm K Srinivas elucidates on current plans and future implications
Bajaj Auto has posted strong growth figures over the past few years. What are the key moves or decisions that you attribute this resurgence to?
The key was the 2009 decision to bring back Discover in the 100cc segment. It was a runaway success primarily due to bringing premium features like DTS-i technology and electric start to a segment which had seen no product innovations for a decade. The success of Discover 100 was further consolidated with launch of Discover 150 which gave the consumer an opportunity to experience a powerful ride. The portfolio was completed with Discover 125 which gave an opportunity to the 1200cc customer to move to a powerful riding experience without missing out on mileage. Pulsar has also recorded strong growth over the past three years and leads in the sports segment. So a concerted strategy of product offerings in the Discover and Pulsar portfolio in line with the consumer needs has worked in our favour.
How has the strategy of promoting independent brands without the backing of mother brand Bajaj worked out for the company?
We adopted the independent brand strategy in 2009-10 following which the 3-year compounded growth rates for brands like Discover and Pulsar have been 85% and 27% respectively. Bajaj Auto has grown by 26% as compared to the industry growth of 20%. At a consolidated level including export, this dual brand strategy has worked out to sale of four million bikes a year for us. We roughly have 10% of global market share by volumes and our target is to take it to 20% which will double our size.
With HMSI stepping on the gas, will you be able to retain your #2 position in the Indian two-wheeler market?
We see ourselves as a motorcycle specialist – the world’s most profitable and world’s third largest motorcycle manufacturer. We are indifferent to someone else’s sale of scooter or mopeds as it is irrelevant to our business. We have exciting plans lined for this fiscal which should help to continue our superior performance.
Bajaj Auto has posted strong growth figures over the past few years. What are the key moves or decisions that you attribute this resurgence to?
The key was the 2009 decision to bring back Discover in the 100cc segment. It was a runaway success primarily due to bringing premium features like DTS-i technology and electric start to a segment which had seen no product innovations for a decade. The success of Discover 100 was further consolidated with launch of Discover 150 which gave the consumer an opportunity to experience a powerful ride. The portfolio was completed with Discover 125 which gave an opportunity to the 1200cc customer to move to a powerful riding experience without missing out on mileage. Pulsar has also recorded strong growth over the past three years and leads in the sports segment. So a concerted strategy of product offerings in the Discover and Pulsar portfolio in line with the consumer needs has worked in our favour.
How has the strategy of promoting independent brands without the backing of mother brand Bajaj worked out for the company?
We adopted the independent brand strategy in 2009-10 following which the 3-year compounded growth rates for brands like Discover and Pulsar have been 85% and 27% respectively. Bajaj Auto has grown by 26% as compared to the industry growth of 20%. At a consolidated level including export, this dual brand strategy has worked out to sale of four million bikes a year for us. We roughly have 10% of global market share by volumes and our target is to take it to 20% which will double our size.
With HMSI stepping on the gas, will you be able to retain your #2 position in the Indian two-wheeler market?
We see ourselves as a motorcycle specialist – the world’s most profitable and world’s third largest motorcycle manufacturer. We are indifferent to someone else’s sale of scooter or mopeds as it is irrelevant to our business. We have exciting plans lined for this fiscal which should help to continue our superior performance.
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