It might have won two fiercely fought battles in court against TVS Motors on alleged model infringements. However, Bajaj Auto is steadily losing to Chennai-based TVS in the battle for the second spot in the two-wheeler (motorcycles and scooters) market place.
Hero Honda is still the leader with 49 per cent share of all sales. But the gap between Bajaj and TVS has come down to a mere 149,000 units for 2008-09, compared with a yawning gap of 527,000 units only a year ago.
Seen another way, 2008-09 ended with Bajaj having 17 per cent market share, compared with 15 per cent for TVS. In 2007-08, Bajaj had 23 per cent, while TVS had 16 per cent of the market. Both have lost to rivals like Hero Honda, but Bajaj has clearly lost much more than TVS.
TVS has not seen sales surge, but Bajaj's sales fell much more sharply in 2008-09, reducing the gap between the two. Bajaj's two-wheeler sales slipped to 1.28 million in 2008-09, from 1.67 million a year earlier, a drop of more than 23 per cent. TVS Motors' sales also fell in the same period, but by just 1.36 per cent. It sold 1.13 million (from 1.15 million earlier) two-wheelers in 2008-09, according to data from the Society of Indian Automobile Manufacturers (Siam).
The battle is expected to intensify this year with both Bajaj Auto and TVS Motors planning to launch a slew of products, which include new motorcycles and scooters as well as updated models.
TVS Motors will look to add more products based on completely new platforms, while Bajaj Auto will focus on sprucing its existing bikes through upgrades of engine technology.
S Sridhar, CEO (two-wheelers), Bajaj Auto, said: "We will launch five-six new products in the next few months that will consolidate our product line-up. New products by competitors had impacted our sales, which had gone down to the 50,000 level in December, but customers are flocking to the Bajaj brand once again."
The company is banking on the launch of updated versions of all Pulsar models like 150, 180 (this month), 200 and 220 (next month), in addition to launching a completely new motorcycle before June.
TVS Motors is working on the launch of three new products, two motorcycles and one a scooter, before the end of the calendar year. Currently, the company sells four main products in the domestic market, as opposed to Bajaj's 11 products.
H S Goindi, head, sales and marketing, TVS Motors, said: "The new products to be launched this year will improve sales significantly. We are working with our customers and dealers to enhance our serviceability. We will begin to see the positive effect in the next couple of months."
Concurrently, Japan's Honda Motorcycle and Scooters India (HMSI) is fast catching up with the Indian companies. It recorded sales of a million units last year, a growth of 16 per cent over the previous year's 871,675 units. Only Hero Honda, Bajaj Auto and TVS Motors logged sales of more than a million units last year. HMSI is also revamping its products. Some of these will be launched later this year.
Analysts attribute Bajaj's fall to Yamaha's aggressive campaign for the FZ 16 model, which is reporting impressive demand. The bike is pegged directly against Bajaj's Pulsar 150 in terms of engine size, but is priced at a premium.
Sanjay Tripathi, head, product, planning and strategy at Yamaha, said: "The demand has been consistent month after month for FZ 16 and the FZ-S. The response for the two bikes has been encouraging. We will continue to dominate the segment."