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Bajaj Probiking Makes Way For KTM

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[Bajaj Auto has always managed to set itself apart from the rest of the competition. India's second largest two-wheeler maker – with a market share of 31 per cent – has a history of making uncanny changes in the way it functions. So be it downing shutters on the scooters business, or not focusing on entry-level motorcycles or bringing a car-like four-wheeler which are still not cars, Bajaj Auto has done it all. In yet another change, the company has decided not to sell its top-end models Pulsar 220 and Avenger out of its Probiking showrooms, as it converts these into KTM Sportmotorcycle dealerships, after the launch of KTM 200 Duke. Amit Nandi, business head (KTM) at Bajaj Auto, says that the idea behind the Probiking concept was to provide a dedicated space to niche and premium bikes, and now that KTM is here, we plan to offer Duke 200 and Kawasaki Ninjas through these dealerships. "As sales (of KTM 200 Duke) picks-up, we will start exiting the Bajaj products from KTM dealerships," says Rajiv Bajaj, MD, Bajaj Auto. On Tuesday, Bajaj unveiled its first KTM product – the 200cc Duke at Rs 1,17,500 — that will go on sale by the end of the month. The company will offer the naked sports motorcycle through its 32 KTM (previously Probiking) dealerships in 30 cities in India. Bajaj, which has a strategic 39 per cent stake in Austria-based KTM, plans to open six new showrooms in Dehradun, Lucknow, South Mumbai, Guwahati, Kathmandu and Margao to sell KTM bikes. 200 Duke – powered by a single cylinder, 200cc, liquid cooled, 4-valve engine with a top power of 25 bhp will compete with the likes of Yamaha R15 and Honda CBR250R. Bajaj believes that the Rs. 1 lakh and above sports motorcycle category will now pick-up and expects to sell 3000 units of KTM 200 Duke per month. He adds the company will bring a 350cc version of Duke next year. KTM aims to sell 50,000-60,000 units in next 3 years in India. The KTM partnership is much more than investment for Bajaj Auto. The company not only manufactures the 125 Duke and 200 Duke out of its Chakan plant, KTM traits will also be seen on the new Pulsar series. "There is a sharing of knowledge and experience, specifically, for the Pulsar motorcycle of Bajaj," hints Bajaj, without disclosing more details. "The physical product is different," he adds. The company will showcase the new Pulsar range of motorcycles next week, as the iconic brand in Indian motorcycle history completes 10 years of existence. With strong export numbers and presence in the premium bike segment, Bajaj Auto managed to clock operating margins of 21 per cent in the third quarter of fiscal 2012. The company sold 3.3 million motorcycles with exports contributing more than 28 per cent. "We prefer Bajaj Auto over Hero MotoCorp in the two-wheeler segment due to higher profitability of exports and premium product portfolio," says analyst Hitesh Goel of Kotak Institutional Equities. Bajaj Auto – with a market share of 31 per cent in the 2-wheeler market – is a distant second in the volume segment of 100-110cc bikes behind the leader Hero MotoCorp. However, it sold over a million units of 125cc and above capacity of motorcycles in April-December 2011 period, where as Hero MotoCorp sold close to 250,000 units. "With brands like Pulsar and Discover, we are not about volumes," adds Bajaj. Bajaj, which has always positioned itself as a premium motorcycle maker with brands like Pulsar and Discover, expects to make a strong entry in the Rs. 1 lakh and above sports motorcycle market through the KTM brand. So far, the company has been selling the Pulsar 220 and Avenger as its premium brands, amid industry expectations that Bajaj will get into 250cc and above capacity bikes. "You need different brands to capture aspirations of different kind of customers. So, in the upper end of sports motorcycle industry, KTM is very well-placed to tap into that potential," says Nandi.