Indian 2-wheeler makers not as lightweight as startups may think: Bajaj MD

Takes a dig at newcomers in the EV space at the launch of the all-new Pulsar 250, points to several differences between legacy firms and startups

As a 75-year old company, Bajaj Auto has adapted itself time and again due to competition, regulations and changing buyer preference and will continue to do so even in the future, Rajiv Bajaj, Managing Director, Bajaj Auto said at the launch of the all new Pulsar 250. He was answering a query on whether the company is in time and bracing itself well for the disruption from the electric two-wheeler startups.

"The Indian two-wheeler makers are not as lightweight as some startups will like to think they are. The question is who would you like to bet on. I will like to bet on BET-- Bajaj, Enfield and TVS. They are champions and they have a track record," said Bajaj.  

Taking a dig on SoftBank-funded Ola Electric, Bajaj said, "Two things are very clear--if we launch a motorcycle in October, you will get in November. It's not that if we  launch it in 2021 you will get it in 2022. That's the startup way and not the legacy way. Secondly, from a company point of view, their (startup) business model is a cash burn model, whereas ours is a cash-flow model. So we operate very differently," said Bajaj adding that there are startups out there that he respects--the biggest one being Ola, but one has to still see them produce and sell.

According to Bajaj, while some firms like Ather, Tork, among others have done well, the newcomers have still to prove themselves. "Do you know what the champions eat for breakfast?  They eat OATS--Ola, Ather, Tork and Smart EV  (an e-three wheeler start up). Picture Abhi baaki hai (the show isn't over yet)," quipped Bajaj.

Bajaj pointed out that post the 'strategic lifting' last month that involved a share swap in its Austrian partner KTM, Bajaj Auto should be as a company that encompasses brands including KTM, Husqvarna, Pierer Mobility and Triumph. This would include not only the motorcycle business but also electric bicycle and electric motorcycle business. "So more or less all the pieces are in place."

Rakesh Sharma, Executive Director, Bajaj Auto said, the company would participate vigorously in the  EV space. "We feel at this stage we don't need to look at volumetric targets but capabilities in terms of R&D, manufacturing and ensure we have the adequate mind share and then of course strive for leadership," said Sharma.  On whether the company has plans to bring e-motorcycles, Sharma said Bajaj is working with KTM to understand the possibility in that area."

Bajaj Auto presently sells the Chetak e-scooter in the EV segment. Referring to Chetak's ramp up plans, he said while Bajaj has found very good traction for the brand in smaller cities, it has adopted a calibrated approach owing to supply related issues. It plans to be present in 30 cities by end of the current fiscal.

Bajaj Auto on Thursday launched the all-new Pulsar 250 in naked and fully-faired variants.

Marking the 20th anniversary of the Pulsar series. It has sold over 12 million units thus far.The 250F is priced at Rs 1.40 lakh (ex-showroom, Delhi) and and 250N at Rs 1.38 lakh (ex-showroom, Delhi).

On an average, Bajaj sells 4,000-5,000 units of the Pulsar 250cc in India. The real objective, said Sharma, is to widen the franchise of the 250cc segment and make it more mainstream. The segment is much smaller compared to other markets.  

"With the latest offering we are hoping to trigger a movement upward in the sporting community," said Sharma, adding that the company is also hoping to address a lot of its export markets with the new Pulsar. The market for the 250cc model is close to 20,000  per month. Bajaj Auto controls a  fourth of the segment.