Bajaj Auto will showcase an all-new Pulsar in early December to celebrate 10 years of the motorcycle's launch. It will hit the roads next year.
“We launched the first Pulsar in November 2001 and are now ready with a 100 per cent new bike with remarkable engine technology. It is really the next big step after DTS-i,” Mr Rajiv Bajaj, Managing Director, said at a press conference here on Friday.
Unique tech
According to him, this technology does not exist anywhere in the world and could soon be a part of the company's Pulsar and Discover range in due course. This focus on ‘innovation for mass consumption' is part of the larger strategy to grow the motorcycle business both here and abroad.
The company believes that exports will eventually outstrip domestic demand, which fits in well with its vision of grabbing a larger share of the global bike market. Africa, ASEAN and Latin America have been identified as key growth regions and an exploratory study is now underway for the competitive Brazil market.
“We could have aimed to be a big player in India but have opted for the depth strategy which involves doing one thing very well. Hence, scooters are out of the picture for the moment,” Mr Bajaj said. It also fits in with the objective of operating a branded business effectively.
Worldwide share
Of the 50 million two-wheelers sold annually worldwide, motorcycles take up 35 million of which Bajaj Auto's share is 10 per cent. “We would rather grow this component. Companies which choose to do one thing well become masters and then take this competence worldwide,” he said.
From Bajaj Auto's point of view, India is among the most challenging and rewarding two-wheeler markets. Once products are accepted here, it is not a big deal replicating this success overseas.
China not on radar
China is not on the radar as an export market even while there is a small assembly operation for the Boxer, which is shipped out to Africa.
Bajaj Auto believes there are serious IPR (intellectual property right) issues in the country, which could jeopardise its global strategy. However, it does source parts from China where costs are 15 per cent lower and there have been no issues on quality.
4th plant
Mr Bajaj also indicated that the proposal to set up a fourth plant (in addition to Chakan, Waluj and Pantnagar) has been put on hold for the moment. This foray was initially prompted by the delay in getting VAT refunds of Rs 1,100 crore from the Maharashtra Government which spawned the idea of exploring Gujarat for further expansions.
Since then, the Maharashtra Government has already made good Rs 860 crore with the balance Rs 240 crore expected soon. “With the two-wheeler market likely to exhibit some slowdown, our intent is to watch the situation before taking a decision on adding capacity,” Mr Bajaj said. The capital expenditure planned for this fiscal and 2012-13 is Rs 500 crore.