CASE STUDY

Bajaj Auto Limited -A Strategic Move

PRESENTED BY
DISHA GHOSALKAR
ASHISH GUPTA
INTRODUCTION
Bajaj Auto Limited is an Indian two-wheeler and three-
wheeler manufacturing company.
They manufactures and sells motorcycles, scooters and auto
rickshaws. Bajaj Auto is a part of the Bajaj Group.
Founded by Jamnalal Bajaj in Rajasthan in the 1930s. It is
based in Pune, Mumbai, with plants in Chakan (Pune), Waluj
(near Aurangabad) and Pantnagar in Uttarakhand. The oldest
plant at Akurdi (Pune) .
Bajaj Auto is the world's 6th -largest manufacturer of
motorcycles and the 4th-largest in India. It is the worlds largest
three-wheeler manufacturer.
On 31 March 2013, its market capitalisation was INR 520
billion (US$ 9.57 billion), making it India's 23rd largest publicly
traded company by market value.
Since its establishment, Bajaj
auto changed its logo just once.
 History
The history of Bajaj auto dates back to the early 1900s.

In 1930 the Bajaj group was formed by Jamunalal Bajaj.

In 1945 Kamalnayan Bajaj, Jamnalals elder son, established

Bachraj Trading Corporation Ltd to Import and sell two and
three wheelers in India.

Till 1959 BTCL was importing two and three wheelers from
Italy and selling them in India.

In 1959, the company got a licence to manufacture scooters

in India.
 Analyze the structural change happening in the
indian two wheeler industry in the 1900s and early
2000s and its implications.

On 29th November 1945 as M/s Bachraj Trading Corporation Private

Limited. It started off by selling imported two- and three-wheelers in
India.

In 1959, it obtained a licence from the Government of India to

manufacture two-wheelers and three-wheelers and it became a public
limited company in 1960.

In 1970, it rolled out its 100,000th vehicle. In 1977, it sold 100,000th

vehicles in a financial year. In 1985, it started producing at Waluj near
Aurangabad.
In 1986, it sold 500,000 vehicles in a financial year.

In 1995, it rolled out its ten millionth vehicle and produced and sold one
million vehicles in a year.
With the launch of motorcycles in 1986, the company has
changed its image from a scooter manufacturer to a two-
wheeler manufacturer.

Despite the opening up of the indian economy and foreign

players coming in with their innovative tchnology.

Till the late 1990 it was the market leader in the two wheeler
industry. However it did not upgrade its scooter models, nor
did it introduce new motorcycle models.

This worked against the company, it grew complacent with the

result that it failed to realize the structural shift in demand
towards motorcycles among Indian consumers.
In late 2001 Bajaj auto started a new advertising campaign to
change of being only a scooter manufacturer. In the
advertisements, Bajaj auto showed motorcycles instead of
scooters as a part of a conscious effect to change the company
image.

On July 18,2009,India based Bajaj Auto Limited(Bajaj Auto),a

leading manufacturer of two wheelers and three wheelers.
Launched the 100cc Discover DTS-Si motorcycle.

The new product had several unique features such as a Digital

Twin Spark-Swirl Induction(DTS-Si)engine, nitrox suspension,
the longest wheelbase in the 100cc segment, a 5 speed gear-
the first in the 100cc segment and a maintenance free battery.
Commenting on the new product.

Feb 2009,the company also launched new Pulsar 150 DTS-Si &
the Pulsar 180 DTS-Si .
 Examine the growth strategy of Bajaj auto over the
decades.

Started new advertising campaign to change its image of being

only scooter manufacturer

Launched 100cc Discover DTS-Si Motorcycle

Added Several features in Motorcycle such as Induction

Engine, Nitrox suspension ,longest wheel based in 100cc
segment,5 speed gear the first in the 100cc segments &
maintenance free battery

Planning to launch more upgraded 100cc bike-by launching

XCD 135 DTS-Si , the new Pulsar 150 DTS-Si & 180 DTS-Si
 Analyze the shortcomings in the business
strategy of Bajaj auto.

No Up gradation In 1900s

No Customized products launched

Failed to realize the structural shifts in demand towards the

motorcycle

Inspite of focusing on launching new scooter models they

focused on motorcycle segment

Then because of growing demand of motorcycles in the market it

was forced to focus on the same segment

Also globalization affects Bajaj Auto Ltd.

CONCLUSION