Riding high on its newly-launched 100cc Discover, Bajaj Auto has posted an 84 per cent jump in motorcycle sales in November 2009 — a month when sales of rivals Hero Honda and TVS Motors grew 34 per cent and 38 per cent. In an email interview with Ranju Sarkar, Bajaj Auto CEO Rajiv Bajaj throws light on his company’s performance. Excerpts:
What’s driving your sales in the last couple of months?
We believe our strategy of credible, tangible differentiation is driving sales.
How has financing improved in recent months?
Financing hasn’t improved much. In any case, only 23 per cent of our bike sales is financed by Bajaj Auto Finance.
Are you happy with your product mix, or are there still gaps in your portfolio?
As long as there’s competition, the portfolio is never done.
You will launch a sub-150cc Pulsar next week. What’s the product gap it will fill?
It seeks to create an all new ‘light sports’ category
Do you think you finally have products that can take on Hero Honda’s Splendor & Passion?
We believe that our categories (brands) of long distance commuting (Discover) and sports (Pulsar) are the most competitive in the marketplace. This is reflected not only in their rapid sales growth but also in our remarkable profitability this year, which is the highest in the entire auto industry, not just in two-wheelers.
How is the market (consumer preference for bikes) evolving?
People are moving to ‘bigger and sportier’ brands, such as our Discover and Pulsar.
The sales gap between you and Hero Honda has widened. By when do you think you would be able to bridge that? Or is that no longer a target?
That’s incorrect. The gap was at its largest in the second half of last year; it has progressively halved in the first half of this year. We’ve gained almost 10 per cent market share and are continuing to outpace the market every month. Our motorcycle marketing strategy is unchanged in its leadership intent; the four-wheeler is not intended to dilute that in any way.