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May 12, 2001
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Bajaj mulls sales channel split for 2, 3-wheelers

Bhupesh Bhandari

Bajaj Auto Ltd is looking at selling two-wheelers and three-wheelers through separate channels. So far, the two have been sold through the same outlets. "We are looking at a situation when the two products will be sold through different channels," Bajaj Auto executive director R L Ravichandran said.

The company has initiated dialogue with its dealers to have separate outlets and manpower for two-wheelers and three-wheelers. "The same dealer will have one outlet for two-wheelers and another one for three-wheelers," Ravichandran explained.

There are two reasons behind separating the channels. One, three-wheelers are bulky and take up a lot of space in the showroom. With the company all set to launch a slew of new two-wheelers -- two motorcycles, two ungeared scooters and a more powerful version of its automatic scooter Saffire -- retailers need more space to display the new models. Two, each product category requires a different focus. Accordingly, the manpower and ambience needs to be different.

However, Ravichandran clarified that the company has no plans to look at selling motorcycles and scooters through separate channels.

In another initiative, Bajaj Auto has decided to appoint an area manager (service) for every four dealers in big centres, who will be on the payrolls of the company and will provide total knowledge to the retailers especially in the field of servicing the products. According to Ravichandran, the company has to gear up for frequent servicing requirements in light of the more four-stroke products being put out by it. "We are improving our penetration in terms of servicing," he added.

Apart from two new four-stroke motorcycles -- Acer and Pulsar -- Bajaj Auto is planning to hit the market with four-stroke version of its bestselling scooter Chetak and a more fuel-efficient version of its existing four-stroke scooter, Legend.

Bajaj Auto is the largest producer of scooters in the world. Its marketshare in the country is in excess of 75 per cent. In motorcycles, it has a 21 per cent share of the market, and for the three-wheeler segment it is 73.3 per cent. The company plans to introduce rear engine 4-stroke liquefied petroleum gas-powered three-wheelers soon.

It has also designed and developed an electric three-wheeler. Pilot batches are being run through field trials currently. The company had introduced compressed natural gas-fired three-wheelers in the Delhi market during the last financial year.

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