India’s second largest manufacturer of motorcycles by sales in the last fiscal year, Bajaj Auto Ltd expects to arrest a decline in sales with the three new models and variants that it plans to launch in 2009. In December, the company’s two-wheeler sales, including exports, declined by 33% to 118,510. In the April-December period, sales fell by 8% to 1.54 million. Given that Bajaj Auto derives most of its sales from urban India, where demand has been relatively harder hit than in the rural market, its sales have been dented more than those of its competitors.
While Bajaj is strong in the entry and premium-level bikes with 35% and 50% market share, respectively, it is weak in the mid segment. In order to address that, it plans to launch at least three new products starting this month. The first of the three launches will be a 135cc bike based on Bajaj Auto’s XCD platform and will retail for about Rs45,000. The remaining two, are planned to be launched in April and July this year. However, it remains to be seen whether the new products will help lift the sagging sales volumes. The company needs a breakthrough product like its premium Pulsar.
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