As we all know Bajaj Motorcycles is performing pretty well, this quarter this Indian manufacturer have shown the remarkable growth of approx. 19 percentage of market share. It deduct a main market percent of Hero Motocorp.
Bajaj Auto, under pressures at the domestic motorcycle market for that past couple of years, reported that a sharp 300 basis points increase in its market share at the June quarter above a yr. ago.
The manufacturer of Discover along with Pulsar models saw its share go up to 16.27 percent in the three months to June by 13.96 per cent at the year ago period. The advantage came at the cost of its rivals like Hero MotoCorp, Honda Motorcycle along with Scooter India along with TVS Motor which observed a marginal drop in their own shares.
As we’ve discussed in our earlier discussion that Hero is just approaching or we can say not want to change their 90’s marketing and product design strategy. Bajaj Motorcycles was revolutionary from last 1.5 decades. The born of Bajaj Pulsar was starting of it, and then after Bajaj never looks back in terms of sales figures and market percentage.
Hero Motorcycles works in more than 55 countries, but approx. -7 years behind the Bajaj’s technology and marketing strategy.
When Saurabh Ganguly was the captain for Indian Cricket team, then Hero Marketing Policy was “Desh Ki Dhadkan” and now when Virat Kohli is the captain of Indian Cricket tem then again Hero is just trying to emotional the Indian in the name of family bonding and patriotism.
Now Public is more technological literate and aware then 2 decade ago. And Hero have to get it, It’s already too late for them to understand, but we are still waiting to see some improvement in their product line up or designing methodology or marketing strategy.
What Bajaj Motorcycle Head is saying
“We are certain of sustaining the industry share. In reality, growing it,” said Eric Vas, the president of bicycle business in Bajaj Auto.
The June quarter profit throughout which the Rajiv Bajaj-led company outgrew the broader bicycle market follows a year disrupted by the transition from BS-III into BSIV emission norms and execution of goods and services taxation. Its earnings in three periods climbed 39 per cent against bicycle market’s 19 percent.
Though Bajaj is nonetheless to get into the stated 24 per cent market share target, the June quarter earnings puts the second biggest motorcycle maker on a strong growth trajectory and makes it keep up with the guide with its nearest rival Honda Motorcycle.
What could be the positive affect factors for Bajaj Motorcycles
Some of this amount and market share profits will also be as a result of price decrease the Bajaj car took from the March quarter for a number of the select variations of its own entrance level version CT 100 to undercut its competitors. Directed by the entrance level bicycles, which higher level 18% because of the prediction of a fantastic monsoon, the increase in the bicycle market was a broadbased person, said Vas.
The rural requirement was strong in the back part of a pent need and prediction of a fantastic monsoon, said Bajaj’s Vas, The 150cc into 200cc bicycles are driven by way of a renewable metropolitan, rural requirement, he added.
“Historically, the first quarter has ever been advantageous to Bajaj Auto,” said an analyst whilst the business possesses lots of Platinas and CT 100s from the north where requirement is strong through the union season.
Bajaj was a larger beneficiary of this summer growing season because its entrance level models are costing a 20 percent reduction on the Hero Splendor. Second, the purchase cost cut at the entrance level models obtained by the business in March in addition has boded well and helped at the amount profit, he mentioned.
The cost decrease is unlikely to have a negative influence on the business’s margins. Yeartodate, the Indian rupee has depreciated 6.85 percent to Rs 68.57 contrary to the buck.
Analysts are hopeful about this street ahead. “Moving forward, new updates and updates might possibly farther increase the national operation of engine cycles,” composed Ashwin Patil, analyst in LKP Securities at an investigation document.