Mar 02, 2003 07:41 PM
6356 Views
(Updated Mar 02, 2003 07:41 PM)
This would serve as a good case study for the positive
effects of threats from external environment for an
organization and an industry as a whole.The threat iam
referring to is the Chinese threat of cheaper two
wheelers in India.When asked about it two years back
Mr.Rahul bajaj told that his company Bajaj Auto is
well prepared to face it.At that time he sounded to me
like a politician who claims that his party will get
2/3 majority even when the opinion polls say that his
party is going to ousted in the next elections.(After all even Mr.ratan Tata told that he dreams to release cars priced below 100000.)It sounded so over confident because the news was that entry of Chinese cheaper two wheelers is almost certain and all Indian two wheelers will be pushed to
the wall.
But two years after,if you see the position now it
appears that what ever Mr.Bajaj told is true.Two years
back the cheapest two wheeler costed around 36000 and
the expected sale price of Chinese vehicles was
25000-30000.What Bajaj Auto has done in the past two
years made it not worthwhile to import bykes at such
price.Bajaj has introduced “Boxer” priced around 30000
which is a great success because of its fuel
efficiency. Tvs Max,Kinetic Boss followed the suit.
Now it has introduced “Byk” priced around 28000.
And mind you,at no compromise on performance it has
brought out these versions of cheaper vehicles.In top end segment also Pulsar is more appreciated than say hero honda CBZ.
What’s more, though the scooters segment is loosing
the turf, Bajaj has increased its market share in
Bykes.It only has to introduce one or more new models to capture the leading position of Hero Honda. it may not be far for us to see that.Bajaj Tempos are doing well.Bajaj is having presence in 60 countries.Along with its insurance
partner Allianz is doing well in insurance.Bajaj
capital is going fine ( its publication Investors
India is slowly gaining momentum).Is Bajaj poised to
establish more firmly in Indian business arena and
join the league of Tatas, Birlas and Relaince?Lets
hope for the best.
