Bajaj Auto Limited plan to offer heavy discounts in the entry level bike segment has taken Hero MotoCorp, Honda and TVS Motors by surprise, reveals Money Control.
The Pune based bike makers recorded its best quarterly market share in the April to June 2018 quarter which spiked 15% from 10% in the same period of the previous year.
Bajaj Auto introduced a price cut of Rs 2,000 on the CT100 in April. It is now priced at Rs 30,714 and is the cheapest motorcycle in the 100cc segment in India. It competes with the Hero HF Deluxe and Splendor Plus, both of which are priced higher by Rs 13,000.
The past quarter saw Hero MotoCorp record a dip in market share to 75% as against a 76% market share in the same period of the previous year even as the HF Dawn was launched in January at Rs 37,400. The bike is exclusively sold in Odisha though plans are afoot to launch this model across the country.
Both Honda and TVS Motors also reported a dip in market share especially in the entry level bike segment. Honda has the CD110 and TVS sells the Sport in this segment while Bajaj Auto has the CT100, Platina and Discovery.
Despite this competition, Hero has stated that they will not participate in the price war and will not lower their prices. The company will continue to focus on the entry level segment with the Splendor, HF and Passion brands while TVS Motors will show more attention to premium bikes under the Apache brand.