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Bajaj Auto is betting on new budget bikes Platina and CT100 to take on Hero Motocorp, after the Discover failed to match its expectations.
Bajaj Auto is India’s third-largest two-wheeler seller.
Platina and CT100, in the entry 100cc segment (priced between Rs 36,800 and Rs 39,700 ex-showroom, Mumbai), are some of the lowest-priced bikes in the category. While Hero MotoCorp's Splendor, India's largest selling 100cc bike, is Rs 45,750, Bajaj's 100cc Discover is Rs 47,711.
Though Discover 100 gave Hero's Splendor a run of its money during the initial days of its launch positioning itself as a high mileage alternative, it lost fizz subsequently when Bajaj launched several models using the same brand. Market share of Discover dipped to 10 per cent from 14 per cent after a 33 per cent slide in volumes last year.
Eric Vaz, president (motorcycle business), Bajaj Auto said, "We would like to do much more in the 100cc end of the market. We see a lot of opportunity in changing things in the market. CT100 was one of those things and we believe that for the 100cc customer which at an average this year is 5 lakh bikes a month, we believe we need to have two brands - Platina and CT100. The Discover will continue there but at the top-end of the 100cc segment."
The company however has ruled out any withdrawal or repositioning of Discover from the entry category which, analysts say, could potentially declutter the brand from the rest. The Discover 100 whose price go uptill Rs 50,700 will continue to play in the premium 100cc category. With the CT100 and Platina Bajaj Auto aims to command a share of 50 per cent in the entry 100cc segment with volumes of around 95,000-100,000 units a month.
"The 100cc segment gets split into two categories - entry level and other. The entry level bikes is around 200,000 bikes per month while the 'others' are 400,000 bikes a month. We used to have 23 per cent share in the entry segment and we hope to take that market share to 50 per cent", added Vaz.
The M1 segment (as classified by Bajaj Auto) are 100cc bikes with prices upto Rs 44,000 generating . Platina, CT100, HF Deluxe, HF Dawn and TVS Sport fall under this category. The next segment in the M2 segment which are also 100cc bikes with prices falling between Rs 44,000-51,000. Models like Bajaj Discover, Hero's Splendor and Passion, Honda's CB Twister and Dream Yuga fall under this segment.
CT100 is a 11 year old brand brought back by Bajaj from hybernation.
The no-frills brand was launched as a replacement for Boxer in 2004 but withdrawn subsequently two years later when the company focussed on other brands such as Discover and Pulsar brands. According to reports CT100 has clocked 35,000 units in March.
Bajaj's renewed push on the Platina, which was not so aggressively pushed in the market unlike Discover, was launched a with an electric start option (it was available in kick start only) in March. Electric start version was already being offered by Hero's HF Deluxe and TVS's Sport.
WARHORSES
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Bajaj Auto is betting on budget bikes Platina and CT100 to take on Hero Motocorp, after the Discover failed to match its expectations
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Platina and CT100 fall in the entry 100cc segment
- They are priced between Rs 36,800 and 39,700, and are some of the lowest-priced bikes in the category
