With the scooter segment posting more growth as compared to motorcycles, the one important question for Rajiv Bajaj at the Pulsar AS200 launch yesterday, was whether they would re-launch scooters in India or not.
Though many of us expected the answer to be in affirmative, Bajaj Auto MD had no surprises for us. He gave the same reply as always- No, scooters are not happening. He further elaborates, we would like to follow the example of Harley Davidson, rather than that of General Motors. Meaning?
Explaining his statement, Mr Bajaj says that General Motors is present in every possible segment in the car industry. Be it luxury sedan, electric car, sports car, or an entry level hatchback; they are everywhere. GM is amongst the top 3 car makers in the world. But at the end of the day, when you look at the profit/loss register, their books are in red. Yes. They are in loss, and not making any profit.
On the other hand, we have Harley Davidson. A motorcycle manufacturer who has always concentrated on a niche segment in the two wheeler industry (one can doubt that after the Street 500 and Street 750, but anyways). Their sales figures aren’t much (2014 register says 2.67 lakh motorcycles sold globally); but even then, they make a few billion dollars in profit!
Yes, we get the point.
So instead of diverging into new segments, Bajaj Auto will be happy to concentrate only in the motorcycle segment, and become world leaders in the same.
Rajiv Bajaj says that they he believes in PM Narendra Modi’s Make in India ideology, but Bajaj aims to better that, by not only making in India, but making in India for the world.
If you look at Bajaj’s stats, they have already made considerable advancements in this department. Already the No 1 two wheeler exporter of India, Bajaj has plans to further increase their exports by adding 25 new markets this fiscal! (About 14 new markets for their 3 wheelers, and 12-13 markets for their two wheelers).
This plan not only sounds impressive, but also has facts to back it up. Here’s one two wheeler manufacturer in India, who is not following a conventional strategy to grow.