Chennai: Facing stiff competition from players like Honda Motorcycles and Hero MotoCorp, two-wheeler major Bajaj Auto on Thursday said it hopes to increase its market share in the 125 cc segment with the launch of 'Discover ST'.
Discover ST is not an upgradate to a Discover model, but a new product in B-segment (125cc), Bajaj Auto President (Motorcycle Business) K Srinivas said.
"It (125cc) constitutes almost 17 per cent of the market (in the motorcycle segment) of which we have around 30 per cent market share. What we are hoping through this product is more customers will migrate to this segment," he told reporters here.
Srinivas unveiled the 125cc Discover ST with features like monoshock suspension, Bajaj's home grown DTI-i twin spark technology, first incorporated in highly popular 'Pulsar' range of motorcycles.
He said, "Our hope is that customers in the 'A segment' will migrate to this and we also gain some market share through this distinguished product. It will be suffice to say we are doing close to 50,000 units in the 125 cc segment. We will be very surprised if we do not increase that number substantially."
When asked if the new bike would "cannibalise" sales of 150cc Discover range, he replied in the affirmative.
"Cannibalisation not only happens in the new category. Whenever we introduce a new model, it cannibalises the old model," he said.
On future plans, he said they would introduce a new product later this year.
"For Bajaj, Pulsar and Discover are two big brands. We will be coming out with a new product in September this year," he said but declined to elaborate.
To a query on capacity expansion plans, Srinivas said, "Last year we did about 4.25 million units. This year we are expecting to reach five million units."
The company would also commence exports of its latest bike to various markets. "It will happen. We are now exporting Boxer and Pulsar range to Africa, South America," he said.
The Discover ST 125cc will compete with Honda CB Shine and has petal disc brake to ensure safety and Bajaj's patented Exhaustec Technology to enhance driveability.