Date:02/05/2004 URL: http://www.thehindu.com/2004/05/02/stories/2004050200421500.htm

Business

Bajaj Auto plans to launch new vehicles

By K. T. Jagannathan

CHENNAI, MAY 1. Bajaj Auto is now working on developing new un-geared scooters, according to the company's Vice-President (Business Development) R. L. Ravichandran.

In an interaction with this correspondent, he said these were at the product design stage at the moment. ``We are in the process of putting them on the drawing board,'' he added. The proposed automatic transmission scooters would be aimed at various segments. "We are looking at the segmented usage of consumers,'' he added.

However, he did not indicate any timeframe for launching these scooters.

The scooter segment in the two-wheeler market comprised geared and automatic vehicles. In 1996-97, the conventional geared vehicles were selling at one lakh units a month. Scooters (at that time only geared ones) comprised 50 per cent of the total two-wheeler market then. Now the share of geared scooters in the two-wheeler market has since dipped to just 6-7 per cent.

Motorcycles now dominate the market with a share of 78 per cent. Automatic gear transmission scooters comprise around 9 per cent of the market.

The balance consists of mopeds, step-through and the like. Time was when Bajaj held 85 per cent of the scooter segment, which formed half the two-wheeler market. Mr. Ravichandran admitted that "even with the entry of Honda, the market (the scooter) is still not taking up.'' Yet, he felt that the automatic segment was growing. The work on new scooters, it was pointed out, was to tap this growth. Mr. Ravichandran also said that Bajaj Auto would launch a new four-stroke Chetak with a new generation gear/transmission technology. This would facilitate a smooth gear shifting.

Bajaj Auto would launch three new bikes this year. One model, code named Super 100, would be launched in May. In terms of style and performance, this would be executive in nature.

However, Mr. Ravichandran said it would be priced at the entry level. He said there was a model vacuum in the price range of Rs. 31,000-Rs. 38,000. The Bajaj Super 100 model, a product of Bajaj-Kawasaki joint initiative, would fill the void in this price range, he said.

In July, Bajaj was planning to launch yet another model, codenamed K60 (125-135 cc). Like Pulsar, it would be a non-Kawasaki bike with DTSi (digitial twin spark ignition) engine. "K60 is undergoing final product stage,'' he said.

He indicated that it could be priced below Rs. 50,000. Sometime in October-November, Bajaj would launch another product, Wave, a four-stroke scooter with DTSi engine. It could be 100 cc plus capacity vehicle.