Bajaj Auto Focus From Scooters to Bikes

Bajaj Auto is planning on shifting focus from scooters to Bajaj bikes. Rahul Bajaj, Bajaj Auto Chairman is likely to re- enter the scooter segment based on the revival of the market. His son and Managing Director Rajiv Bajaj asserts that the company`s major focus will be on bikes. Commenting on the new developments, he said, "At the moment, we have a clear and sharp focus -- the global motorcycle market".

Rahul Bajaj said that it is quite likely that the company will get into manufacturing scooters gain. But eventually, he directed the question to his son Rajiv, keeping his stated position that he did not take the decisions any more. In late 2009, the company announced that it would stop making scooters by end of 2009-10 fiscal, thereby drawing the curtains on 'Hamara Bajaj'.

Rajiv Bajaj had said the company didn't see much sense in making scooters as the segment didn't sell according to its expectations. He added, "If we are to be a motorcycle specialist, we cannot make scooters". Since then, the scooter market has witnessed significant growth, led by gearless scooters from Honda Motorcycle & Scooter India, which is the market leader in the segment now.

According to Society of Indian Automobile Manufacturers Association (SIAM) data, the Indian scooter market has witnessed a growth of 46.57% at 16, 97,204 units in the April-January period this fiscal, as against 11, and 57,902 units in the comparable period last fiscal.

Bajaj Auto on the other hand, focused its attention on motorcycles. It offered a slew of models namely Discover, Bajaj Pulsar and even increased stake in Austrian bikemaker KTM Power Sports AG to nearly 38.09% in a bid to expand presence globally.