 "Pulsar back in spotlight with a Rs 1 lakh bike")
Bajaj Auto (Bajaj), the third-largest two-wheeler seller, launched its most expensive Pulsar to strengthen its credentials in the premium segment. It is increasingly facing challenges in the budget bikes category.
The Pune-based company launched the Pulsar 200RS at Rs 1.18 lakh (ex-showroom, Delhi), on March 26, breaching the Rs 1 lakh price tag for the first time. With this addition, Bajaj has six models (135, 150, 180, 200NS, 220) under Pulsar. It has the highest number of offerings with more than 150cc engines, among its competition.
Royal Enfield has products in the same price bracket but appeal to a different set of customers which primarily look for leisure riding, rather than sports-biking. The Pulsar 200RS will compete with Hero Karizma, KTM Duke 200, Yamaha R15, Honda CBR250 and CBR150 on pricing and performance. With the exception of the Karizma (Rs 83,900), all the other models are priced at Rs 1-2 lakh.
Thereafter, Bajaj shifted focus to the budget commuter segment with the Discover, launching new models in the 100cc-150cc category. However, with the exception of the 150cc model, volumes under Discover have been disappointing for the company.
Bajaj's share in the upto-125cc category where it also has Platina, besides Discover, has dipped to 11 per cent (from nearly 17 per cent last year) with a sales plunge of 34 per cent in April, 2014-February, 2015, according to Society of Indian Automobile Manufacturers (SIAM). Bajaj has four models under Discover and one model under Platina.
With more than 40 per cent share in the premium segment, Pulsar has retained its leadership position despite increased competition. Pulsar sells more than 55,000 units every month in the domestic sports motorcycle market.
Eric Vas, president - motorcycle business, Bajaj Auto, says, "We showed one version of this product in the last Auto Expo. We spent a lot of time getting it right, took more than two and a half year to develop this product. The sports segment is poised for rapid growth driven by evolving customer preferences."
Bajaj is keen to take Pulsar further from here to make it more aspirational. Pulsar is likely to see a nearly 400cc model added under it, before the end of the next financial year, say sources. The Pulsar 200RS is Bajaj's most powerful bike yet.
Besides the regular version, Bajaj has launched an anti-lock braking system version of the Pulsar 200RS, priced at Rs 1.30 lakh (ex-showroom, Delhi). The company is hoping to clock at least 2,500 units a month for now.
If Pulsar is to lead the charge for Bajaj, the Indian consumer would have to keep upgrading from the humble 100cc commuter bikes to premium sports bikes. Earlier premium bikes were bought for infrequent use, but today, riders, in search of power to cruise and overtake on highways, are shifting to 150-200cc bikes even for daily commutes.
"The share of premium bikes will rise steadily. It is a logical evolution of the market,"Rajiv Bajaj said earlier.
The premium bike segment (150cc and above) has seen some aggressive launches recently. Honda, Yamaha and Suzuki have launched either new or face-lifted products. The Chennai-based TVS Motors will also launch the Apache 200, followed by a series of high-performance two-wheelers developed jointly with German BMW.
The flagship Pulsars could also get the proverbial fresh coat of paint. Sources say that the Pulsar 150, which is India's largest-selling premium bike, and its larger cousin, Pulsar 180, will get upgrades.
"The Pulsar has become an iconic brand from Bajaj - driving its volumes, profitability and the Bajaj brand itself. It is for the first time that Bajaj is charging more than Rs 1 lakh for a product, a significant milestone," says a Mumbai-based analyst.
Close to 40 per cent of Bajaj's domestic two-wheeler sales comes from the Pulsar and the balance from Discover, CT100 and Platina. The company has sold an average 149,000 two-wheelers this financial year in India.
"The learnings from KTM and Kawasaki have helped Bajaj. With a focus on making the Pulsar its cornerstone, Bajaj was able to upgrade itself to a two-wheeler maker straddling Rs 50,000-1.3 lakh a piece effortlessly", says another analyst.
The Pune-based company launched the Pulsar 200RS at Rs 1.18 lakh (ex-showroom, Delhi), on March 26, breaching the Rs 1 lakh price tag for the first time. With this addition, Bajaj has six models (135, 150, 180, 200NS, 220) under Pulsar. It has the highest number of offerings with more than 150cc engines, among its competition.
Royal Enfield has products in the same price bracket but appeal to a different set of customers which primarily look for leisure riding, rather than sports-biking. The Pulsar 200RS will compete with Hero Karizma, KTM Duke 200, Yamaha R15, Honda CBR250 and CBR150 on pricing and performance. With the exception of the Karizma (Rs 83,900), all the other models are priced at Rs 1-2 lakh.
More From This Section
The 200RS took more than two years to build and is Bajaj's first fully-faired (a bike with most of its components covered) model. The 200NS, priced at Rs 91,553 (ex-showroom, Delhi), was the previous Pulsar to debut, three years ago.
Thereafter, Bajaj shifted focus to the budget commuter segment with the Discover, launching new models in the 100cc-150cc category. However, with the exception of the 150cc model, volumes under Discover have been disappointing for the company.
Bajaj's share in the upto-125cc category where it also has Platina, besides Discover, has dipped to 11 per cent (from nearly 17 per cent last year) with a sales plunge of 34 per cent in April, 2014-February, 2015, according to Society of Indian Automobile Manufacturers (SIAM). Bajaj has four models under Discover and one model under Platina.
With more than 40 per cent share in the premium segment, Pulsar has retained its leadership position despite increased competition. Pulsar sells more than 55,000 units every month in the domestic sports motorcycle market.
Eric Vas, president - motorcycle business, Bajaj Auto, says, "We showed one version of this product in the last Auto Expo. We spent a lot of time getting it right, took more than two and a half year to develop this product. The sports segment is poised for rapid growth driven by evolving customer preferences."
Bajaj is keen to take Pulsar further from here to make it more aspirational. Pulsar is likely to see a nearly 400cc model added under it, before the end of the next financial year, say sources. The Pulsar 200RS is Bajaj's most powerful bike yet.
Besides the regular version, Bajaj has launched an anti-lock braking system version of the Pulsar 200RS, priced at Rs 1.30 lakh (ex-showroom, Delhi). The company is hoping to clock at least 2,500 units a month for now.
If Pulsar is to lead the charge for Bajaj, the Indian consumer would have to keep upgrading from the humble 100cc commuter bikes to premium sports bikes. Earlier premium bikes were bought for infrequent use, but today, riders, in search of power to cruise and overtake on highways, are shifting to 150-200cc bikes even for daily commutes.
"The share of premium bikes will rise steadily. It is a logical evolution of the market,"Rajiv Bajaj said earlier.
The premium bike segment (150cc and above) has seen some aggressive launches recently. Honda, Yamaha and Suzuki have launched either new or face-lifted products. The Chennai-based TVS Motors will also launch the Apache 200, followed by a series of high-performance two-wheelers developed jointly with German BMW.
The flagship Pulsars could also get the proverbial fresh coat of paint. Sources say that the Pulsar 150, which is India's largest-selling premium bike, and its larger cousin, Pulsar 180, will get upgrades.
"The Pulsar has become an iconic brand from Bajaj - driving its volumes, profitability and the Bajaj brand itself. It is for the first time that Bajaj is charging more than Rs 1 lakh for a product, a significant milestone," says a Mumbai-based analyst.
Close to 40 per cent of Bajaj's domestic two-wheeler sales comes from the Pulsar and the balance from Discover, CT100 and Platina. The company has sold an average 149,000 two-wheelers this financial year in India.
"The learnings from KTM and Kawasaki have helped Bajaj. With a focus on making the Pulsar its cornerstone, Bajaj was able to upgrade itself to a two-wheeler maker straddling Rs 50,000-1.3 lakh a piece effortlessly", says another analyst.