Bajaj Autos Splendor Moment? Management Bets On New CNG Motorcycle

Bajaj Auto Ltd. will be launching its entry-level CNG motorcycle on July 17, according to the auto major's Executive Director Rakesh Sharma. With this, the two-wheeler maker will enter an uncharted territory, as the motorcycle is the first of its kind.

The company is looking to cut down fuel costs by 50% with the product, which is being targeted at customers earning a monthly income of Rs 30,000-35,000, Sharma said. This is lower than the current economy-conscious customers, whose income ranges between Rs 30,000-Rs 50,000 per month.

The motorcycle will cost Rs 80,000, the company had revealed at its 'Bajaj Beyond' event earlier this year. The company hopes it will increase their market share in the lower range where it currently averages between 8-9%, it had said.

Hero MotoCorp Ltd. is the market leader in the lower CC segments, with its Splendor being one of the highest selling motorcycles over the past few years.

Also Read: Bajaj Auto: New Launches, Exports Boost Could Increase Revenue In FY25

Flat Sales In May

May sales figures were flat largely due to the concentration of marriage and festive season in the previous month, Sharma said. If one looks at April and May figures in conjunction, it paints a positive picture, he said.

This year saw Gudi Padwa and Navratri fall in April instead of March. Both festivals tend to be peak sale season for the auto sector as many consumers buy vehicles during the festive season.

Also Read: Nifty EV Index: Tata Motors Outweighs Maruti Suzuki, Bajaj Auto Tops

Pulsar 400 And Exports

Bajaj Auto also launched the Pulsar 400 in April-end, priced aggressively at Rs 1.85 lakh. This is much lower as compared with peers such as Harley Davidson 440x, Triumph and Royal Enfield's Scram, which are priced around Rs 2.2 lakh onwards.

Dispatches to the dealers for the Pulsar 400 will start in the next few days, according to Sharma.

Exports have been critical for Bajaj Auto, accounting for 50% of sales for the company. However, exports saw a fall in growth of 10% in the last fiscal, due to geopolitical issues.

But, with geographies like Latin America showing good growth, exports are on a recovery path, Sharma said. The region accounts for 25% of export volume for the company.

Africa is the biggest export market for the company, contributing 45% to total export volume, while Nigeria is the biggest drawdown amid currency devaluation. Sharma expects overall export volume to be muted until Nigeria makes a comeback, where the company has more than 50% market share.

Also Read: Bajaj's Pulsar NS400Z Makes Bid To Stand Out In The 400-cc Market

Is This The ‘Splendor’ Moment For Bajaj Auto?

Rajiv Bajaj, CEO of Bajaj Auto, has been vocal about the weakness in the 100-cc segment in the past. Historically, Bajaj Auto has had limited presence in the entry-level segment, and their market share has been around the 8–9% range with the CT 100 and Platina, according to sales volume on VAHAN.

While Bajaj Auto did offer products in the 110-cc and above segments, it lacked a prominent brand to appeal to consumers. Back in 2018, Rajiv Bajaj, managing director of Bajaj Auto, called Discover 100-cc his career's "biggest blunder". The company since then has always focused on the premium segment.

Now, with the launch of the CNG motorcycle, this might be a new vertical for the company where it was absent over the past few years. The revival of Chetak as a EV scooter was much-needed and the 400-cc launch has shown the company's strong focus to fill gaps.