Bajaj is planning to spent Rs 300 crore on new launches and Research and Development this fiscal year to bring back sales for the company
Bajaj is like most of the manufacturers which depend on one model for its sales. The Pulsar brand is the bread and butter model of Bajaj and in the recent times things are not looking good for the Indian manufacturer. Bajaj was the second manufacturer in India interms of sales but Honda overtook them and then TVS took third position from Bajaj recently.
In the last fiscal year, Bajaj Auto had 15.6 percent market share in the Indian two wheeler segment. But the company had set itself a target of 24 percent market share by March 2018 and Bajaj was not able to achieve it as the Indian manufacturer didn’t had a major launch in the recent times while competitors are introducing new or updated products to keep up the sales momentum.
Bajaj is planning to spent Rs 300 crore on new launches and Research and Development this fiscal year to bring back sales for the company. Kevin D’Sa, President (finance), Bajaj Auto, said that Keeping in mind the R&D expenses, balancing equipment and tooling there is a plan to have a capex of Rs 250-300 crore which is similar to last year.
By the end of April, 2018 Bajaj has managed to increase its market share by 1 percent. In April, Bajaj introduced rear disc brake option for Pulsar 150 at the same price as previous model with drum brakes and the company dropped price for dum brake model also. Bajaj also dropped price of kick start variant of CT 100.
These updates and price cut has helped the company to improve its volumes. In the coming months, we can expect Bajaj to introduce update for current model along with new marketing strategies which will improve sales for the company. The Indian manufacturer is also increasing capacity as the festival season is approaching which is were majority sales are coming.
Bajaj is also focusing on three wheeler segment also which bring lots of volumes for the company. The RE brand from Bajaj is expected to get an update in coming months as these models are facing stiff competition from rivals. The Indian manufacturer has three plants with a total capacity of 6.6 million units in which 5.8 million units for two wheelers .