The price hike is Rs. 10,000/- for the Dominar 400 and Rs. 4000/- for the Pulsar Neon.
Bajaj MD, Mr. Rajiv Bajaj has hiked the price of the Dominar 400 and the Pulsar Neon by 5%. Bajaj is currently pioneering the 2-wheeler sector, which itself enables them to command a higher price for their products. But, the decision is in quite a contrast to the sector’s already persistent slowdown. The Dominar 400 has received a price hike of Rs. 10,000/- while the Pulsar Neon is now dearer by Rs. 4000/-. Previously, the bikes retailed for Rs. 1,80,000/- and Rs. 71,200/- (ex-showroom, Delhi).
The automaker believes that they have been the leader for the last 15 months, and have extended their lead and consequently a greater market share. The current market share in the sports segment falls somewhere between 35-40%. All thanks to the introduction of 8 new products, 4 in the Pulsar brand, 2 in the KTM series, 1 Dominar as well as 1 Avenger. Since the lead is massive, a 1% increase in the prices of SKUs is ‘modest’ as per them.
The only 2 exceptions to the modest price hike, are the Pulsar 150 Neon and the Dominar 400 since they have undergone significant revamping in engine and suspension terms.
In the commuter segment, Bajaj is the second-best automaker in sales. In this segment, only the newly introduced CT 110’s price has been increased, by 5%. It will not impede their growth because it merely makes a 5% volume of their commuter portfolio.
The automaker believes that this slowdown isn’t a major setback for the industry, and the government need not respond to it with a 5-10% loss in GST. The price hike shouldn’t come as a shocker because it is mostly due to the new regulatory requirements.
Talking about discounts, to dispose off the BS4 stock, as only BS6 compliant vehicles will be on sale, in effect from 1 April 2020, many of the contenders, including Hero will bombard the market with huge promotions. Similarly, Bajaj will provide large discounts as well to stay in the lead.
BS4 2-Wheeler Discount
– The Dominar 400 and the Pulsar 150 Neon to get expensive by 5%
– Priced hiked by Rs. 10,000/- and Rs. 4,000/- respectively
– The automaker believes that this slowdown isn’t a major setback for the industry
Source – CNBCTV18.com