Bajaj Bikes To Become Independent Brands
Bajaj India is planing a restructuring exercise which will see independent brands from the 2-wheeler manufacturer. The company will distance itself from the parent brand and focus on just four motorcycle brands - Boxer, Discover, Pulsar and KTM, as well as the rear-engine three-wheeler brand, phasing out the rest. Bajaj has already stopped making bikes such as the XCD 125 and 135, Wind and Caliber. Others like the CT100 will be made for some export markets, but these models will migrate to the Boxer brand vertical in a year. The company has no plans to wind down the entry-level Platina, but there will be no more investments. The new strategy will also help Bajaj stand out from arch rival Hero Honda.
"The Bajaj brand is very diffused, covering everything from heaters and hair oil to insurance and financial services. Correcting that problem is the biggest opportunity for the company," said Mr Bajaj. "We have to be clear about what our brand stands for. A sporty Pulsar and the humble auto rickshaw are as different as chalk and cheese," he added.
[Via: Motorbeam]
Boxer 125: Bajaj’s sub Rs 25,000 bike
According to some reports in the media, Bajaj has started manufacturing its low cost 125cc bike in China. This bike, which will be sold in China, Nigeria and some of Bajaj's other exports markets, will be branded 'Boxer' instead of 'Bajaj.' The 'Boxer' branding will also be used in India, when the bike is launched here by end-2009 or early-2010.
Bajaj's low cost Boxer 125 is expected be priced at around Rs 22-24,000. Since the company does not want to associate itself with such low-priced budget bikes, it will sell these bikes under the Boxer brand rather than use the Bajaj name. To begin with, Bajaj will manufacture around 20,000 units of the Boxer 125 per annum at its plant in China. About 75% of the total production will be sold in Nigeria.
Currently, Bajaj's cheapest motorcycle is the Platina 100, which sells for around Rs 35,000, ex-showroom. Bajaj's chief competitor, Hero Honda also sells a bike in this segment - its CD Dawn is priced at Rs 33,500, ex-showroom.
Both Bajaj and Hero Honda believe they can significantly boost their motorcycle sales by launching bikes that cost around the Rs 20,000 mark. The primary market for these ultra low cost bikes would be rural India, where these bikes could replace bicycles and mopeds etc. While motorcycle buyers in bigger Indian cities gravitate towards style and performance, purchase price and fuel-efficiency are still the two most important factors for motorcycle buyers in smaller towns.
[Via: indiaautomotive]
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