Bajaj Auto is all set to ride on the demand for their bikes in rural, but the bike major understands well that the rural bike customers stopped compromising on just the frugal riding but are looking for safety and performance bikes. Rural market is asking for bikes with wider tyres that can give good grip on rough terrains, which implies higher power engines.
The bike major has received great demand for its 125cc and 150cc variants of Bajaj Discover and is set to cash in on the demand while also gearing itself to meet new trend of requirements.
Bajaj Auto aims to sell about 3 million units in India; the increase in demand for powerful bikes prompts the bike major to add models in the segment. The company plans to launch Boxer 150cc by August, and the new Boxer will specifically target the rural market.
S Sridhar BAL President (Motorcycles) was telling media, “Our market studies have found that there is a change in the demand from rural customers. They are moving beyond frugal, mileage driven products. They are asking for bikes that provide them safety and performance.”
Until 2010 the entry segment of 100cc accounted for 95% of total sales, but recent trend shows an increase of 45% sales in the 125cc and 150cc segment in the rural areas. The company speculates that the ratio of 100cc to 125cc plus segments to be 50-50 by the third quarter this year, and eventual takeover of the sales by the upper segment bikes.