Advertisement


Advertisement

Thread Rating:
  • 4 Vote(s) - 2.5 Average
  • 1
  • 2
  • 3
  • 4
  • 5
'We're planning a different strategy for small cars’
Advertisement
#1
Bajaj Auto’s plans to get into the small car segment may have to wait a little longer. The company, which is working with French carmaker

Renault and Japanese major Nissan to develop an ultra-low-cost car (ULCC), now wants to tweak its plans to effectively compete with India’s market leader in small cars, Maruti Suzuki.

“Having learnt from our experience of trying to make a cheaper 100cc bike when someone else is actually the segment leader, I am not convinced that following the strategy of a somewhat cheaper small car when Maruti is the leader is going to yield any sustainable results. So, we are proposing a slightly different strategy, which we are discussing among ourselves, but we need a little more time to clarify,” Bajaj Auto managing director Rajiv Bajaj told ET Now.

Making it clear that Bajaj Auto is yet to fix its co-branding issues with its partners, Mr Bajaj said: “It is still a small car. It is still approximately in the space in which we have spoken earlier. It doesn’t require a different facility, a different paint shop or a different piece of land. All that remains the same. It is just that in terms of what its content will be. Will it be very car like or will it be somewhat different, is what will ultimately decide how it is positioned, how it is branded. We have to decide on that. In terms of its design and development, all that is continuing. So, there is no disruption there.”

Bajaj Auto, which is yet to sign a joint venture agreement with its partners, Renault and Nissan, says that the car project will be up and running in two years. Apart from Maruti Suzuki, which dominates the small car space in India, Bajaj Auto will also have to compete with Tata Motors’ Nano. On its plans for Austrian bike maker KTM Power Sport, where Bajaj Auto currently owns 32% stake, Rajiv Bajaj said the shareholding will increase in the days ahead. “It is our understanding that over time Bajaj has the option to increase the stake. Nothing is being planned in the immediate term or nothing has been agreed for execution in the immediate term. Our work continues to develop bikes and manufacture them out of Jharkhand, starting around the middle of next year,” he added.

Meanwhile, Bajaj Auto is shifting its focus back to the 100cc segment where Hero Honda is a clear market leader. “I would say that the Discover 100 is not a 100cc bike. It may have a 100cc engine in terms of specification. The Discover was born five years ago as a 125 cc bike and all we are doing is extending it downward so that the consumer does not see it as a 100 cc bike. He sees it as aspirational to a larger premium motorcycle, which now comes with a fuel-efficient engine,” Mr Bajaj said.

Reply
Thanks given by:
Advertisement
Advertisement




Possibly Related Threads...
Thread Author Replies Views Last Post
  General News: Volvo cars in India might start using radar based safety tech nairrk 0 1,085 06-27-2016, 06:30 PM
Last Post: nairrk
  General News: Delhi Government Bans Retrofitting CNG Conversion Kits in In-Use Cars nairrk 0 975 06-26-2016, 07:36 PM
Last Post: nairrk
  General News: Driverless cars pose social dilemma: study nairrk 0 968 06-26-2016, 07:27 PM
Last Post: nairrk
  Maruti Suzuki recalls over 33,000 Alto cars SRK 0 904 03-10-2015, 06:21 PM
Last Post: SRK
  Maruti sold 2 Lakh Ritz Cars Mobilespedia 0 1,364 05-04-2012, 10:50 PM
Last Post: Mobilespedia
Tongue General News:  Cars used by Indian Billionaires.. nairrk 0 1,970 02-17-2011, 12:33 PM
Last Post: nairrk
  Help: Ratan Tata dreams of cars running on water: Scientist Mr.Bhat 0 997 12-31-2010, 05:05 PM
Last Post: Mr.Bhat
Information Help: Top 5 much awaited economy cars in India.!! nairrk 0 1,396 12-04-2010, 05:10 PM
Last Post: nairrk
Information Help: 10 most searched Hatchback cars.!!! nairrk 0 1,094 12-01-2010, 06:32 PM
Last Post: nairrk
  Help: BMW planning to increase investments in India to Rs 1.8 bn Mr.Bhat 0 877 11-24-2010, 08:22 PM
Last Post: Mr.Bhat

Forum Jump:


Users browsing this thread: 1 Guest(s)
Advertisement