Bajaj Auto may phase out CT 100, two step-thrus

Two-wheeler major Bajaj Auto is planning to gradually phase out its top selling motor cycle brand, CT 100, from the market, said a senior company official.

According to the official, the company will modify the make-up of the existing CT 100 and will sell the bike with a new brand name. CT 100 is an entry level 100 cc bike with sales of about 75,000 per month. CT 100 Deluxe, a premium model, will be converted and sold as Discover model.

CT 100 is chairman Rahul Bajaj's favourite bike and one of the blockbusters of Bajaj stable along with Pulsar. Both the brands have essentially catapulted the company's position as a dominant motor cycle manufacturer in the country.

"CT 100 is a high performing brand for Bajaj Auto with good sales value. Our aim is to gradually phase out the brand and launch a modified version of the bike with a new name offering better value for the customers," said the official.

According to him, the customer attraction for a good brand could be improved further by value adding the brand with new features and promoting it the right manner. The phase-out is expected in another 5 to 6 months.

Bajaj has already phased out its 'Boxer,' which it used to sell at 4,000 units per month. The company is also phasing out its step-thru brands, Bajaj M80 and M50, from the market on account of declining demand. The two-stroke engine is not environment friendly and does not meet the environment norms followed by many states, another factor responsible for the phase-out.

Avenger, Pulsar and Discover are among the top known motor cycle brands of Bajaj Auto. The company is restructuring its dealership focusing on four channels - probiking in urban towns, rural areas, entry level bikes and scooters, and three-wheelers.

The company's Probiking outlets in towns would focus only on selling high-end bikes of 150 cc or more such as Pulsar and Avenger, which comprise of 70 per cent of the segment. It also has plans to sell high-end bikes in rural areas. This could be done by creating awareness among people and dealers in rural areas as well as encouraging micro-financing in rural areas, said a senior Bajaj official.

Bajaj launched its first Probiking outlet at Bund Garden in Pune. The outlet is directly owned by Bajaj Auto. The company has plans to expand the Probiking outlets to other parts of the country.

"Although the first outlet is owned by Bajaj Auto, it will take some months for us to decide whether to set up such partnerships our own or through partnerships," said Rajiv Bajaj, chief executive officer and managing director.

The company has about 480 dealers spread across the country, which will be expanded to 510 by March 2006.