Bajaj Auto has been doing very well, even though it has Honda on its heels as far as market share goes. The fact that Honda sells scooters and Bajaj Auto doesn’t, makes this competition between both companies a little pointless. In a recent interview with Economic Times, Rajiv Bajaj (MD, Bajaj Auto) has shown optimism towards the Indian motorcycle market. He feels the venture with Kawasaki has been fruitful and has helped Bajaj gain market share in emerging markets.
Rajiv Bajaj states that he is aware about the slow down which is taking place in the 2-wheeler market and the company has taken necessary precautions by reducing production and preventing inventory pile-up. He feels that in order to boost market share, new products are crucial. The company is able to survive with Kawasaki in other markets (like Philippines and Indonesia) as both companies have a very different portfolio. Bajaj Auto makes small, value for money motorcycles, while Kawasaki develops speed oriented machines.
The Bajaj-Kawasaki joint venture in Philippines has seen them grab 45% market share. Now the same business model is being implemented in Indonesia, where Bajaj will launch the Pulsar 200 NS by mid-2013. The reason for bringing in the Pulsar 200 NS a good 6 months after the Indian launch is obvious. The company wants to first fulfill the initial demand for the bike locally. Bajaj Auto also has Brazil in its sights, where it plans to export a good amount of motorcycles in the future. The company is already present in certain South American countries. Rajiv Bajaj also stated that the entry of Honda has affected the motorcycle industry and Indian manufacturers need to buck up by offering better technology to maintain market share.