Bajaj release: Sales, May 2007

This release just came in from Bajaj. The release below is in Arial,
my comments below are in this font

Motorcycle Sales - May	2007	2006	% Change
Motorcycles	167,008	196,120	-15
Total two-wheelers	169,327	199,426	-15
3 WHEELERS	24,110	24,029	0
TOTAL 2&3 WHEELERS	193,437	223,455	-13
Exports out of the above	49,203	32,179	53

1. Owing to the 22% fall in the sales of 100cc motorcycles, the motorcycle industry as a whole de-grew by 13.4%.
   
   
2. On the other hand, the 125cc+ motorcycle segment recorded a relatively healthy growth of 10%.
   
   
3. These contrasting trends reinforce our strong conviction that the industry will shortly witness an increasingly rapid shift away from underperforming and overpriced 100cc motorcycles to 125cc+ motorcycles offering far greater value in both design and performance.
   
   
4. Bajaj continued to lead the 125cc+ motorcycle industry with approximately 45% market share in May 2007. It does so largely by virtue of just two products: the Discover DTS-i and the Pulsar DTS-i. This reflects both a strong brand position as well as a favorable cost position.
   
   
5. With the launch of an all new non-100cc 4-stroke motorcycle in FY08Q2, Bajaj expects to catalyze this impending industry shift, thereby improving both its profitability as well as its market share. This all new motorcycle platform will be based on the extremely fuel efficient development of Bajaj’s DTS-i technology called DTS-Si, i.e. Digital Twin Spark Swirl Induction, for which an initial capacity of 50,000 motorcycles per month is currently being established at Bajaj Waluj.
   
   
6. Bajaj 3-wheeler sales continue to be steady while export growth maintained its robust momentum.
   
   
7. Bajaj has been selected for the EEPC All India Export Awards for its sterling performance in exports in FY07.

Year Till Date 2007-08

Motorcycle Sales from April to May	2007	2006	% Change
MOTORCYCLES	331,312	384,638	-14
TOTAL 2 WHEELERS	335,019	390,390	-14
3 WHEELERS	48,470	45,188	7
TOTAL 2&3 WHEELERS	383,489	435,578	-12
Exports out of the above	101,129	63,894	58

The idea of a new DTS-Si, Digital Twin Spark Swirl ignition is interesting. Given that it will be a non-100cc four-stroke (which nixes the idea of an Orbital tie-up, direct injection two-stroke, for now at any rate) with this new technology. While no details are available yet (obviously), one can only guess, so let us make some guesses then, eh?

Bajaj has said earlier that it would 'leave' the 100cc playground. The intention was misunderstood and I think the real statement was to compete with the entry-level products, but with a motorcycle that offered a larger displacement and used technology to offer similar economy and greater performance. DTS-Si seems to be it. Swirl in that acronym stands for increased violence on part of the gases as they enter the combustion chamber which tends to speed up and clean up combustion. Google swirl and you will notice that it comes up with the names of many a large manufacturer, including Suzuki. Bajaj could, in theory, add swirl to the already pretty clean and complete DTSi setup and produce an even more frugal motor. Or maintain the same level of frugality (100 kpl under standard conditions is enough, I think).

If (or rather when) Bajaj launches the motorcycle, I would expect to see a snazzy cousin to the Platina overall – which could be the Sonic – with alloy wheels, a 125cc DTS-Si motor and good performance. Another way to produce more economy and performance would be to focus on the weight and make the new machine as light as possible. The current Platina weighs in at 109 kg, even five-seven kgs lower would make a difference.

All of which cannot hide that fact, of course, that sales are slowing. TVS also posted a similar drop in figures and I can't wait for the Hero Honda release that probably says that sales rose by four per cent, bucking the industry trend etc.