60 new two-wheeler models in next one yr

Call it novelty value or the increasing appetite of the Indian customer. The two-wheeler industry is churning out new models at fast intervals to maintain the sales momentum with over 60 fresh launches scheduled in the next one year.

With every new launch, the automobile companies are able to leverage the dual benefit of beating the rising input costs, by upgrading their existing product line, and keeping their customer base intact by catering to the demand for diverse new products.

Pradeep Saxena, senior vice-president, TNS Automotive says: "It takes a lot of time and investment for a company to raise a new product. The main components -- engine and frame -- takes years to develop, so does a new production platform and all these consume huge investments. So the companies have taken the easy route of entering into a cyclic-product launch, which are basically an extension of showcasing their existing brands frequently."

Following the same trend, last Friday, Hero Honda brought out two of its current 100 cc models -- CD Deluxe and CD Dawn -- as new launches, by refining its engines and modifying looks.

Toeing the same line, TVS Motors added an electric-start option to its current entry level 100 cc brand, StaR City, and showcased it as a new launch.

"The consumers are very price conscious. They want newer products without any extra price tag. By adding a few cosmetic features, companies are able to offer a new product at the same price. A new launch has turned out to be the most cost-effective method of generating heat in the market and attracting potential customers, prompting companies to regularly branch out launches as new offerings," said a senior official of the Society of Indian Automobile Manufacturers.

Automobiles are no longer seen only as a mode of transport. Customers perceive them as an extension of their personality and are demanding variety at regular intervals. To meet their tastes and demands, auto companies are betting at these frequent launches.

S Shridhar, vice-president, Bajaj Auto says: "People want change and we are offering it without adding any cost to it. For us, marketing expenditure is almost equal to the cost of developing a new product. We spend huge amounts on marketing products to customers. Re-launching of the same brand as different variants at regular intervals help us leverage these costs as well as satisfy customers' aspirations."

New features like fuel injection systems, real time mileage indicators, aerodynamic styling, and a dual disk brakes system will help companies keep their flags flying for the next one year at least.