Some people may call it natural progression or evolution that the company which created the category in the country decides to stop producing scooters, and focus it's energies on motor bikes.
In fact in the pre-lib days it use to as part and parcel of the middle class house hold, even use to be integral part of the dowry ...and I am used to quoting it as an example of how long one had to wait to get a scooter versus the off-the shelf purchase in as many colours as you want today (99 for a scooty!!!!). But then when I read the news in the morning that Bajaj is exiting the scooters business, it brought a sense of nostalgia and sadness that after a few years we may not it plying on Indian roads ...
Bajaj says it wants to focus on making motorcycles, and maybe the decision was always around the corner after it stopped the production of Chetak a couple of years back , which was the largest selling scooter in the world at one point in time. But recently Mahindra and Mahindra made an entry into the category, all time rival Hero is also saying it is unable to keep up with the demand for its scooter brand 'Pleasure', sale of Honda 'Activa' has always been good, and TVS Motors is planning to add 110 cc Wego to its range.
With so much of activity in the category why is it that Bajaj wanting to stop making scooters, obviously it cannot keep making the same old scooter, but to leave a category??? The company says it wants to become the world's largest bike manufacturer and scooters limit it's focus?? somehow I am not convinced that it is the right decision, looking at the strong association of scooters and Bajaj.
Last few years have seen many strong brands in India getting lost , ( Deccan, Satyam..) maybe we will add it to the list. I look forward to comments from readers if they agree with me or not ...
Very pertinent analysis!
ReplyDeleteSir, this article was quite different from your style of writing, but I certainly agree with your point made. Bajaj is not giving the real reasons for closing the segment altogether.
ReplyDeleteBajaj had made one more controversial decision of stoping to produce it 100 CC motor bike CT 100. As it is taught in strategy classroom that to occupy a higher segment you have to leave the lower segments - precisely seems to be at work here. As long as Pulsar has the success it does Bajaj has little to worry about.
ReplyDeleteBajaj indeed has been synonymous with the scooter for a long time. There are very few brands in the world which portray the image of the category. Ex: Cherry Blossom, Dalda.
ReplyDeleteShutting down the scooter segment looks natural progression. Growth in scooter segment for men has been diminishing. Demand for scooters overall is increasing because of creation of new category - scooty (mainly for women).
It will take years for Bajaj to compete with TVS for scooty.
There aint any conspiracy or ad hoc decision on the part of Bajaj. Bajaj had indeed taken the right decision by cremating the dead elepahnt rather than dragging in the name of emotional appeal
@anshuman, @Varun, @Sunny @anonoymous, the reactions which the post has brought highlights the association that the brand has with most of us, and the fact that stronger the brand becomes more the ownership shifts to the consumers. No easy answers to the why they have stopped scooters ..
ReplyDeleteSir
ReplyDeleteAs is being discussed Bjaj is experimenting with its strategies. But, this firm has the guts to admit its mistakes and correct them mid way. This is examplified in the return on Bjaj to 100cc bike segment with Discover 100 cc.
i agree that it was necessary for bajaj to concentrate on bikes, but one must not forget that bajaj is still considered the most trusted brand in the scooter market.
ReplyDeleteI feel bajaj should not have phased out Chetak. Instead, they could have replaced older model with a technologically-advanced scooter. Thereby, they could have taken the leverage of 'brand chetak'.
@Animesh, I think they did try to come up withe some new scooter, but then decided to exit the categroy itself, but yes they did not try to leverage on the brand chetak, which as you have rightly pointed out, is still a very strong brand ...
ReplyDelete