Rakesh Sharma, Executive Director of Bajaj Auto confirmed about the brand’s plans to extend its two wheeler lineup into premium segment offering. The brand is planning its tactics to extend Bajaj’s offerings in premium plus 2.5 lakh segment.
Speaking in an interview, Sharma spoke about the brand’s current sales and margins. He said, “January and February saw 45 percent revenue contribution from premium motorcycles. A couple of months for it to start to show up substantially in the blended margin. So if we continue on this track and that is our strategy to keep driving the premium end strongly at the expense of the high end of the commuter motorcycle in the industry. So we continue with that strategy, if it persists it will definitely impact the margins positively.Therefore, come April-May we will start to see a better exchange realisation because of hedging position. So that should also drop down to the margins.”
Speaking about the premium devision he said, “Our strategy to keep driving the premium end strongly at the expense of the high end of the commuter motorcycle in the industry. We strongly feel the need to introduce Bajaj as a brand in the premium segment. Having said this, the brand still has to formulate a way to introduce Bajaj as a premium offering. The question to retain brand identity or launch a new brand for premium Bajaj brand still needs to be seen depending upon the way customers accept Bajaj. The company is also extending its ways into premium segment with partnership offering and needs to be seen what future hold for the same. We expect to introduce the premium segment of Bajaj by the end of this year or next fiscal quarter.”