Under fire for losing market share to competition Rajiv Bajaj, Managing Director, Bajaj Auto assured shareholders that the company is taking corrective measures to boost its presence in the domestic market including launch of more than half a dozen products.
The Pune-based company is confident of taking its market share to 26 percent from the current 15 percent on the back of new launches in each of the seven brands it sells.
Rajiv Bajaj, Managing Director, Bajaj Auto, said, “By December (2017) we will launch new products under all our seven brands – CT, Platina, Discover, V, Avenger, Pulsar, and Dominar. Our effort is to gain another 6-7 percent market share (from 20 percent by end of Q2). We want to go to 25-26 percent.”
Bajaj Auto lost market share due to the anomaly created by the sudden change in emission norms during the last two days of March, 2017. That was when companies doled out 50 percent discount to get rid of the older Bharat Stage III stock.
“When the transition took place from BS-III to BS-IV we had done the right thing. Because we had converted to BS-IV well in advance and had no almost stock of BS-III by end of March. The competition on the other hand had lakhs of vehicle in stock”,
Bajaj Auto claimed that the company had just 15,000 BS-III vehicles in the channel. “Discounts ranged from Rs 5,000-25,000. We estimate the competition put out discounts of Rs 700 crore during the two days on 8 lakh vehicles. Consumers, who were going to buy products in April, May, June and July, decided to prepone to end of March,” Bajaj said, speaking to shareholders on Thursday.
With the help of new launches under the brands V, Avenger, Dominar and Pulsar Bajaj Auto managed to spruce up its market share to 20 percent by end of December in the motorcycle segment. However, it fell to 15 percent by end of last month as dealers engaged in restocking their inventory.
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