bajaj says to launch four new bikes in fy09

Bajaj says to launch four new bikes in FY09
31 Mar, 2008, 2140 hrs IST, REUTERS

MUMBAI: Bajaj Auto Ltd, India's second-biggest motorcycle maker, said on Monday it would launch four new 125 cc bikes in the fiscal year starting April, as it seeks to maintain profitability in a tough market.

Bajaj, which trails leader Hero Honda Motors Ltd, said 125 cc motorbikes had grown to account for 36 percent of the market by sales, and had a higher share of its profitability.

"In view of this unmistakable consumer trend in favour of 125 cc motorcycles, Bajaj has planned to launch four new 125 cc motorcycles in FY2008/09," Managing Director Rajiv Bajaj said in a statement.

Bajaj, a unit of Bajaj Holdings, which has said it would exit the highly competitive 100 cc segment, said sales of its 125 cc bikes grew 26 percent in the 11-month period to February, while sales of its entry-level 100 cc bikes fell about 32 percent.

It is scheduled to report sales for March on Tuesday. Earlier, Hero Honda reported sales in the fiscal year to March 31 were nearly flat at 3.34 million two-wheelers.

Motorbike sales in India, the second-biggest market after China, have taken a hit from high interest rates and rising inflation and as banks tightened credit.

"In an economy that is currently inflationary and in a market that is expected to continue to be generally difficult, Bajaj believes its strategy will continue to provide for stable profitability," Bajaj said