Reference Auto

Bajaj Auto has the potential to fill in the vacuum (in the medium to long term) between the category of superbikes, prices of which begin from above Rs 8 lakh, and the basic segment (bikes priced below Rs 80,000) with the launch of the Kawasaki Ninja 650R and this niche (as well as nascent) market could see sales of the 650R grow over 100 per cent or more than double every year.

In India, Bajaj Auto is the sole distributor of Kawasaki motorcycles.

Kawasaki has priced the Ninja 650R at a very competitive Rs 4.75 lakh (ex-showroom Delhi). The motorcycle is expected to give tough competition to the recently-launched Hyosung’s GT650R, which is priced a tad higher at Rs 5 lakh.

Bajaj is bullish on this market, which it feels has the potential of witnessing 30 motorcycle sales every month.

“With our new bike, we expect to double or may be triple the market size. We are upbeat that we will be the biggest player in this category,” Eric Vas, president, new projects, Bajaj Auto, said.

Realising that divisions in the premium category will create several niches, Vas added, “While evaluating the segment, we realised that there is a huge potential in the Rs 3-8 lakh bracket as there are very few players here. Currently, only Harley Davidson and Hyosung have offerings in this segment. Hence, we see an opportunity to grow.”

The luxury segment includes players such as Honda, Ducati, Harley Davidson and Aprillia. “It gives a good value proposition to introduce a bike in the Rs 3-8 lakh category,” said Vas.

Ninja 650R will be Kawasaki’s second model in the country’s market. The Japanese firm had rolled out the Ninja 250R a couple of years ago and registered healthy sales of 1,500 bikes.

Apparently, this burgeoning segment has prompted the Japanese two-wheeler maker to contemplate launching more models but no plans were revealed.

On the company’s pricing plans, Yoshiro Segawa, managing director, India Kawasaki Motors, said, “We have an assembly unit in Thailand for the Ninja where we have tried hard to cut the prices without compromising on quality.”

The company could source components locally to maintain its competitive pricing. According to a company official, Kawasaki currently sources only 2-3 per cent parts from India. However, Kawasaki is looking at increasing this percentage substantially.

Kawasaki Ninja 650R will roll out through Bajaj’s pro-biking business, which currently sells high-end bikes of Bajaj. Bajaj will also market KTM bikes through its pro-biking outlets, going ahead.

As of now, the pro-biking business registers around 3,500 vehicle sales a month. The two companies are also eyeing the overseas market in a big way. Currently, the duo is working together in the Philippines and is in talks to roll out more models in other geographies also.

In the super premium bikes, currently 26 models are being offered in the market and around 35 bikes are sold monthly. This means that the number of models available compared to the number of offerings is quite high, in other words the market is crowded, at least for now.

The lower-end luxury market is set to see over 100 per cent growth and if Bajaj is able to rev up its offerings, it could be one of the big players in this segment also.

Also, since Bajaj and Kawasaki are considering export as an option, this could accelerate sales even in the short term of the Kawasaki Ninja 650R, which falls in the lower end of the luxury segment.