K. Srinivas, President – Motorcycles, Bajaj Auto Ltd., speaks to B&E about how Bajaj Auto made inroads into the motorcycle industry and how it plans a bigger tomorrow with a strong back-end unit
B&E: How has the transformation from scooters to motorcycles been for Bajaj Auto? Do you believe that the company took the right call by completely moving away from the scooters segment?
K. Srinivas (KS): Last month, Fortune magazine, while naming Rajiv Bajaj, MD, Bajaj Auto, as one of the most influential Asian CEOs, commented on Bajaj Auto being the motorcycle powerhouse. This statement in a nutshell defines the goal of Bajaj Auto which is to be a dominant player in the global motorcycle market. Our first milestone was achieved last year when we became the third-largest motorcycle manufacturer in the world after being the most profitable. How did a “scooter manufacturer” become a “Powerhouse of motorcycles”? It starts with our strategy of focus. With a global market of 60 million motorcycles each year, we have enough head room to grow. Focus demands sacrifice, hence we have freed ourselves from being distracted by mopeds and scooters. We believe that strategy is not only about what one does, it is also much about what one doesn’t do.
B&E: Even when the Pulsar was launched, most experts didn’t give Bajaj much of a chance with motorcycles. The reason being that your first bike wasn’t “conventional” enough to suit pockets or heads in the Indian mass-market. What do you have to say on this?
KS: Even within the motorcycle industry, one can make a choice to compete in all segments with “me too” products or to differentiate oneself. We believe in sharply positioning our brands. For example, in 2001 when we introduced the Pulsar, we did exactly opposite of what the motorcycle industry was doing during that time. The market was fuel-efficiency and 100cc. We introduced powerful 150-180cc engines. The market was conservative bikes. But the Pulsar was aggressive and sporty. The market was small bikes. The Pulsar was a big bike. The market was economical bikes. The Pulsar was expensive. Even then, industry experts never gave us a change, and we didn’t listen to them!
B&E: And similar was the reaction to the launch of the Discover in the 125cc category?
KS: Yes. When we introduced the Discover in 2004, we pitched it against boring bikes. Discover was a 125cc commuter bike, with a sporty styling, DTSi engine, alloy wheels, self-start, nitrox suspension, LED tail lamps. It had all features which were reserved for sporty bikes. Then, manufactures were telling commuters – “You need fuel efficiency, then you will get boring bikes. If you want exciting bikes, buy a sports bike.” Discover created the “Sports commuter” category in India. And just like Pulsar, it recreated the “sports” category in India. It’s no surprise that we are market leaders in both these categories today.
B&E: How has the transformation from scooters to motorcycles been for Bajaj Auto? Do you believe that the company took the right call by completely moving away from the scooters segment?
K. Srinivas (KS): Last month, Fortune magazine, while naming Rajiv Bajaj, MD, Bajaj Auto, as one of the most influential Asian CEOs, commented on Bajaj Auto being the motorcycle powerhouse. This statement in a nutshell defines the goal of Bajaj Auto which is to be a dominant player in the global motorcycle market. Our first milestone was achieved last year when we became the third-largest motorcycle manufacturer in the world after being the most profitable. How did a “scooter manufacturer” become a “Powerhouse of motorcycles”? It starts with our strategy of focus. With a global market of 60 million motorcycles each year, we have enough head room to grow. Focus demands sacrifice, hence we have freed ourselves from being distracted by mopeds and scooters. We believe that strategy is not only about what one does, it is also much about what one doesn’t do.
B&E: Even when the Pulsar was launched, most experts didn’t give Bajaj much of a chance with motorcycles. The reason being that your first bike wasn’t “conventional” enough to suit pockets or heads in the Indian mass-market. What do you have to say on this?
KS: Even within the motorcycle industry, one can make a choice to compete in all segments with “me too” products or to differentiate oneself. We believe in sharply positioning our brands. For example, in 2001 when we introduced the Pulsar, we did exactly opposite of what the motorcycle industry was doing during that time. The market was fuel-efficiency and 100cc. We introduced powerful 150-180cc engines. The market was conservative bikes. But the Pulsar was aggressive and sporty. The market was small bikes. The Pulsar was a big bike. The market was economical bikes. The Pulsar was expensive. Even then, industry experts never gave us a change, and we didn’t listen to them!
B&E: And similar was the reaction to the launch of the Discover in the 125cc category?
KS: Yes. When we introduced the Discover in 2004, we pitched it against boring bikes. Discover was a 125cc commuter bike, with a sporty styling, DTSi engine, alloy wheels, self-start, nitrox suspension, LED tail lamps. It had all features which were reserved for sporty bikes. Then, manufactures were telling commuters – “You need fuel efficiency, then you will get boring bikes. If you want exciting bikes, buy a sports bike.” Discover created the “Sports commuter” category in India. And just like Pulsar, it recreated the “sports” category in India. It’s no surprise that we are market leaders in both these categories today.
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
