Bajaj Auto could be devising a multi-pronged strategy to generate growth in these troubled times. The company, which has seen a significant slowdown in domestic bike offtake over the last several months, may have already developed a low-cost motorcycle even as it works on upgrading the XCD platform for launching a “sports” bike next month.

 

Though the company has been denying any such move, industry sources say Bajaj has just begun testing a low-cost product in export markets such as Nigeria. According to these sources, this is a “sub-125 cc” bike and a debate is currently on within the company on whether to price it around Rs 30,000 (lower than the cheapest bike available in the market today) or slightly higher. Bajaj may be able to price this bike lower than existing, entry level motorcycles by importing many components from low-cost sourcing bases such as China.

 

Bajaj has suffered over the last few months due to lack of a strong product line-up, with only one product in the entry level, 100-125 cc segment. Bajaj needs to strengthen its presence in the entry level space. Platina is its only offering in the space. An entry into low cost segment could give it an edge over competition since the company would be offering a good product at the lowest possible price.

crackcrack
Related Bajaj Auto Ltd. Links:

Bajaj Auto Share Price

3601.00 1.50 (0.04%) Apr 15, 18:01
1 Year Price Chart
Peers
Company Name CMP
Bajaj Auto 3601.00
Hero MotoCorp 2863.00
TVS Motor 550.00
Eicher Motors 2411.65
Atul Auto 169.00
View more..
Sensex vs Bajaj Auto
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback