[singlepic id=10915 w=540 h=375 float=center]
Every company’s primary aim is shareholder wealth maximization and Bajaj Auto is no different in this regard. The 2-wheeler major has been selling the Pulsar in large numbers and Rajiv Bajaj has recently claimed that the Pulsar is the most profitable motorcycle in the whole wide world! He says that a profit margin of 20% is what the company earns on every Pulsar sold, which is indeed remarkable. Infact, Rajiv Bajaj further goes onto claim that Bajaj Auto is the most profitable company in the world, which itself helps them to be cash strong and helps them in picking up stake in global companies.
The Bajaj Pulsar has always been priced aggressively and is known as a value for money product. Even with such pricing, Bajaj Auto maintains a stupendous margin on the product. The reason for such high margins could be extreme localization of parts and long term supplier contracts. Furthermore, the parts from the Pulsar are also used on the Discover and the KTM Duke, thereby giving the company economies of scale. Now we know why the Bajaj RE60 looks like a bigger rickshaw and the company is not even calling it a car, because Bajaj knows that profit maximization is of foremost importance.
We read and reply to almost every comment on MotorBeam and last month Neil had put this comment, which sums up why Bajaj Auto is so successful with the Pulsar.
“All people enjoy the Yamaha radicals because they have the chassis, engines, etc being developed for 20 years and odd so there is nothing new they profoundly gave it to the R15. But if Bajaj gave all the aspects which a common Indian never knew or had seen before, example – projector beam, back lit switches, twin spark, 17-inch wheels, tubeless tyres, where were the Japs (yawning)? Now this all new Pulsar NS has set some ground breaking revelations. Bajaj has planted something new and that too from a Indian Manufacturer we have to appreciate it” – Neil commented.
[singlepic id=10917 w=540 h=375 float=center]
[singlepic id=10918 w=540 h=375 float=center]
[singlepic id=10916 w=540 h=375 float=center]
