Bajaj Auto’s New Pulsar Bikes Help Reverse Market Share Losses, Says Rakesh Sharma

Bajaj Auto is recovering market share in the 150–250cc motorcycle segment following new launches, while expanding production capacity and targeting operating margins above 20%, says Rakesh Sharma.

Bajaj Auto Regains Market Share in 150–250cc Segment After New Launches

Bajaj Auto has started recovering market share in India’s 150–250cc motorcycle segment after introducing several new models, according to Rakesh Sharma, the company’s Joint Managing Director. The Pune-based automaker is refreshing its product portfolio while expanding manufacturing capacity and focusing on profitability amid rising input costs.

Sharma said the company’s recent market share losses were concentrated mainly in the 100cc and 125cc categories. In contrast, the 150–250cc segment has shown signs of improvement over the past three to four months.

New Motorcycle Launches Help Bajaj Auto Recover Market Share

According to Sharma, Bajaj Auto’s earlier performance in the 150–250cc category was affected by ageing products and declining momentum across parts of its portfolio.

To address the challenge, the company introduced new models between November last year and August–September this year. These launches have helped stabilise its position and begin reversing previous market share losses.

The 150–250cc category plays a significant role in Bajaj Auto’s domestic motorcycle business, accounting for approximately 45% of that business. Domestic motorcycles, in turn, contribute around 20% of the company’s overall operations, with the remaining business coming from three-wheelers, international markets and other segments.

Sharma also highlighted the contribution of new products in the company’s 125cc-plus portfolio, which accounted for around 7% of the portfolio in August.

Bajaj Auto Expands Its Pulsar Motorcycle Range

Bajaj Auto introduced several Pulsar models during the July–September quarter to strengthen its position in the competitive motorcycle market.

Key Pulsar Launches

• August 7: The company launched the Pulsar N160 S and N160 SS, expanding its Pulsar N range.

• August 24: Bajaj Auto introduced new versions of the Pulsar 150 and Pulsar 125 to mark 25 years of the Pulsar brand.

• September 21: The Pulsar NS400Z received an upgrade featuring a 5-inch TFT console and Google Maps mirroring.

The company said these products gained traction soon after their introduction. The launches form part of its broader strategy to refresh its motorcycle lineup and improve competitiveness across key engine-capacity categories.

Bajaj Auto Plans to Increase Production Capacity

Alongside its product strategy, Bajaj Auto is preparing to expand manufacturing capacity to meet growing demand, particularly for electric vehicles and premium motorcycles.

The company plans to increase production capacity for its Chetak electric scooter from 60,000 to 80,000 units, with the additional capacity expected to become operational in the fourth quarter.

Bajaj Auto’s overall manufacturing capacity currently stands at approximately 625,000 units annually. It expects to add another 100,000–120,000 units of capacity across different segments over the next six to nine months.

Expansion to Be Funded Through Internal Resources

Sharma said the near-term capacity expansion would be financed through internal resources and was not expected to materially affect the company’s dividend policy.

Although immediate capital expenditure requirements remain relatively modest, Bajaj Auto is evaluating the possibility of establishing a sixth manufacturing facility. Such a project would require a substantially larger investment.

Company Targets Operating Margins Above 20%

Bajaj Auto is also focusing on protecting profitability despite inflationary pressures affecting metals, polymers, electronic components, manufacturing conversion charges and freight.

The company reported an operating margin of 20.9% in the September quarter. Sharma said the performance was better than the company’s earlier expectation of approximately 18–19%.

Cost controls, price increases, currency movements and operating leverage from higher sales volumes supported the margin performance.

Price Hikes and Cost Controls to Support Profitability

Bajaj Auto implemented price increases from October 1 to offset around 30% of the inflationary impact. The company may consider further price revisions depending on market demand and competitive conditions.

It is also pursuing additional cost-management measures to limit the impact of higher input expenses.

Sharma reiterated the company’s objective of maintaining operating margins above 20%. However, the final outcome will depend on how input costs change in the coming quarter and how the market responds to potential price increases.

Bajaj Auto Balances Growth and Profitability

Bajaj Auto’s recent motorcycle launches, capacity expansion plans and focus on cost efficiency reflect its efforts to strengthen its market position while sustaining profitability.

The recovery in the 150–250cc segment suggests that refreshed products are beginning to support the company’s performance in an important domestic motorcycle category. At the same time, investments in electric scooters and premium motorcycles are intended to help the company respond to changing customer demand.

The company’s ability to maintain margins above 20% will depend on managing inflation, pricing decisions and production costs as it pursues further growth.

Conclusion

Bajaj Auto’s recent recovery in the 150–250cc motorcycle segment highlights the importance of product innovation and timely launches in strengthening its market position. With new Pulsar models gaining traction, the company is also expanding production capacity to meet rising demand for electric scooters and premium motorcycles. At the same time, its focus on cost management, selective price increases and operational efficiency will be crucial to maintaining operating margins above 20%. Bajaj Auto’s ability to balance market share growth with profitability will remain a key factor in its performance in the coming quarters.