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As we already reported earlier, Bajaj is planning to launch its second new motorcycle for the year in November. The new bike will directly compete with Hero Honda Splendor and Passion motorcycles from Hero Honda, which rule the roost.

Rajiv Bajaj, MD said it will create a new category or segment in the motorcycle market. According to the analysts it would be in the 100-125cc segment. The new Discover 100cc with a DTSi engine is the world’s most fuel-efficient motorcycle, with a certified 89 km to a litre of petrol is billed by Bajaj. It was a breakthrough in the segment.

Bajaj Auto’s current market share in the 100cc segment stands at 9 per cent, while that of Hero Honda’s is pegged at around 80 per cent. Baja currently leads the market with the share of 21 per cent in the total motorcycle segment.

Bajaj says, “We hope to hope to regain our former market share of 36 per cent by all that we are doing. The sooner we gain the better.”

The 100cc segment contributes to one-third of the total motorcycle market in India. Big companies like Hero Honda, TVS [Get Quote] Motor, and Yamaha dominates the 100cc motorcycle segment. There are two categories in the segment the entry-level motorcycles brought up by models like Hero Honda’s Dawn and CD Deluxe, and the premium end constituting the Passion and Splendor.

The ratio between entry and premium 100cc motorcycles is in the ratio of 30:70, says Pradeep Saxena, senior vice president (automotive practice) of TNS Global. Contradicting the popular perception, rural buyers also opt for the premium 100cc models and not only urban consumers buy the premium 100cc motorcycles.

“It’s difficult to pinpoint geographical discriminators for the 100cc segment. It has got to do with income levels. Prosperous rural buyers are buying premium 100cc motorcycles. Over the last two years, we’ve witnessed equal rate of growths in both categories of the 100cc motorcycle segment.”

Bajaj Auto’s second segmentation in the 100cc segment lies in disruptive marketing. By introducing the new Discover 100cc, which is derived from the Discover 125/135 cc lineage, consumers would perceive the 100cc as a 125 cc, says Bajaj.

“Those who till now could not afford the 125cc motorcycle can now buy the vehicle at the cost of a 100cc bike.”

“The new Discover 100cc offers long-distance commuter’s enhanced comfort by offering features like gas filled Nitrox rear shock absorbers and anti-friction front forks.” Enhancing more features in a 100cc motorcycle can help in third differentiation.

Hero Honda has a total of seven models in 100cc segment some are CD Dawn, CD Deluxe, Splendor, and Passion and remaining three are variants. Bajaj Auto has the Platina and the Discover in the 100cc segment but there are no variants currently.

Next Honda too is planning to enter into the 100cc segment. Shinji Aoyoma, president & CEO of Honda Motorcycle and Scooters India Ltd said that, “Our 100cc motorcycle will be positioned as a sporty performance motorcycle”.

[Source: Infibeam]

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