Bajaj Auto’s revised pricing strategy has done a world of good as its market share increased by 20 per cent in the final quarter of FY2019
In the final quarter of FY2019, Bajaj Auto increased its market share to a scarcely believable 20 per cent. It is highly impressive considering that not too long ago the Chakan-based manufacturer’s domestic shares plummeted to 14 per cent. Bajaj does not have a presence in the scooter space as well while all of its mainstream rivals do make a big fortune out of it.
Solely depending on the motorcycles sales and the export markets, Bajaj’s steady rise comes at the same time when big guns like Hero MotoCorp and Honda are facing difficulties. During Q4 FY2019 both the former allies had to make do with fall in 100 and 550 basis points respectively.
Last month, the first of the new financial year, saw Bajaj’s volume sales increase by a respectable 4.8 per cent when compared to the same month a year ago. In contrast, the country’s leading two-wheeler brands Hero and Honda had witnessed 17 per cent and 33 per cent sales drop during April 2019.
It is no secret that Bajaj’s revised pricing strategy has played to its strengths as the homegrown company decreased prices of its entry-level commuter models to take the fight to the segment leader Hero MotoCorp. Bajaj put its heads down and continuously updated its base commuter range with new variants at a luring price point with additional features.
Having reached the target of 20 per cent market share in motorcycle space in FY2019, Bajaj is on a roll as it sought ways to retail the non-ABS variants of its existing lineup, as since the beginning of this month the feature is mandatory for all motorcycles of above 125 cc engine capacity.
Bajaj’s shares have risen by 13 per cent since January while other key Indian brands like Hero, TVS and Royal Enfield have fell prey to the downward trend. However, it will be interesting to see how Bajaj’s knack of outgrowing or reversing the sales trend in the industry continues in this financial year as anything could happen in the competitive Indian market.