Why should Bajaj bring back Bajaj Chetak?
Bajaj Auto Limited, once the undisputed leader of the two wheeler scooter segment in India, sustained the storm of motorcycle mania against global technology giants like Honda (Hero Honda) and has grown to strength reinventing to meet Indian consumer preferences with innovative models like Pulsar and Discover. During the last 5 years, the automatic scooter segment has gained traction from different market segments be it urban (tier 1, tier 2 cities), rural, middle class, owing to the convenience they offered in highly congested cities and towns.
A Ride Back to History
Why is the scooter segment growing like never before?
“Vehicle for All” image of scooter is driving the demand among Indian families.
Ease of learning, lighter weight, higher underseat carrying capacity, ease of drive, better mileage, low maintenance have added to this image making the segment a clear ray of hope in saturated two wheeler market.
Indian scooter market is dominated by Honda with a market share of 56.1%, followed by Hero with market share of 16.9%. Honda with its models of Activa, Aviator & Dio has dominated the market for last 5 years and has emerged the second largest 2 wheeler player in the country. Hero plans to launch two models (Hero Dash and Hero Zir) in 2015-16. Success of the Jupiter model is expected to help TVS fare well in 2015-16 as it is priced lower than models of Honda and Hero.
How can the new Chetak be positioned?
Bajaj Chetak can launch non-geared scooter in 2 segments: 110 CC and 125 CC to cater to maximum sectors of the market.
Bajaj has its owns strengths of established distribution network of more than 675 dealership points, R&D capabilities, highest market cap in industry, strong financials should capture the promising opportunity this segment has shown in recent past to fight the slew of competitors entering this segment and thus sustain growth.
Iconic brand presence of Bajaj Chetak and the relatively high success rates of new generation models like Royal Enfield, Vespa would complement the idea.
With no product in scooter segment which has an estimated share of 25 % in 2014-15 and estimated growth rate of 12-13% and a conducive macro environment make it an obvious choice for Bajaj to take a plunge in it and nothing other than Chetak could be a better brand to be relaunched with the kind of emotional connect it has with this generation of buyers.