Bajaj plans to take on Tata’s Rs 1 lakh car

navdeep · 26th March 2007, 08:41

Fearing erosion in two-wheeler sales once Ratan Tata’s dream Rs 1-lakh car is launched, the country’s second largest two-wheeler manufacturer Baja Auto is seriously considering entering the passenger car market. Hero Honda, the country’s top bikemaker has already said it would foray into the four-wheeler market. “The JD power study says that it (Tata’s one lakh car) will affect the two-wheeler market. If that happens, then we would also manufacture cars for the market,” Bajaj Auto chairman Rahul Bajaj said on the sidelines of the eighth annual convocation of IIM Indore.

Bajaj Auto, which was earlier a scooter manufacturer, shifted gears and got into the motorcycle segment when the market preference moved to the latter from scooters.
Bajaj had earlier said it would launch a goods-carrier version of a light commercial vehicle in the first half of 2009. It is also expected to a launch passenger carrier version a little later. The proposed vehicle will be fitted with a 500-600cc engine and will be available in diesel, petrol and compressed natural gas versions.
International consultancy firm JD Power had said early this week said that the Tatas’ people’s car would severely affect the top-end motorcycle segment in which Bajaj is the market leader with Pulsar. Tata Motor’s proposed car is likely to be launched in the third quarter of 2008.
The country’s largest car manufacturer Maruti Udyog Ltd’s True Value initiative has already dented the domestic high-end motorcycle market. Under True Value, Maruti dealers sell used car certified by the company at a considerably lower price compared with a new one. Maruti sells around 75,000 used cars a year under this initiative.

Story : Bajaj plans to take on Tata’s Rs 1 lakh car

DriverR · 26th March 2007, 15:04

Hope they don't plan to put two Pulsars side by side!

But seriously, it would be good to have this additional competition in the market segment to ensure that Tata does not become complacent.

Come on Tata, you had a long lead by now. Show us the car!!!!

moralfibre · 26th March 2007, 16:24

Quote:

Originally Posted by DriverR

Hope they don't plan to put two Pulsars side by side!

Yes, that would be a 260 cc quad plug 2 in 1 exhaust engine 36 bhp engine. And they will come with OE 17" rims

esteem_lover · 26th March 2007, 16:32

Quote:

Originally Posted by moralfibre

Yes, that would be a 260 cc quad plug 2 in 1 exhaust engine 36 bhp engine. And they will come with OE 17" rims

Make that 300/360/440CC variants with side stand indicators.

Country Road · 26th March 2007, 16:49

How can it affect the top end 2-wheelers? The person going in for a Rs.1 lac car and those going in for a Rs.80/90 k bike like Karizma are two different animals. The car will be a functional one. While people who buy a near 1 lac bike do not look for mere functions. They look at speed, performance, sheer looks and living their ultimate fantasy - riding a fast bike.

neoonwheels · 26th March 2007, 18:49

Exactly.... people who buy 1 Lac bike are in a different league than people who will buy TATA 1L car... I dont think it will affect 1 L bike market... it is same as saying... "People who buy 70 Lac Merc/BMW will buy Volvo B7R for the same money....."

moralfibre · 26th March 2007, 18:59

Quote:

Originally Posted by moralfibre

Yes, that would be a 260 cc quad plug 2 in 1 exhaust engine 36 bhp engine. And they will come with OE 17" rims

Quote:

Originally Posted by esteem_lover

Make that 300/360/440CC variants with side stand indicators.

Forgot to add that with all this you still go over Rs. 1,40,000/- on - road. Wonder how Tata is managing to keep costs low!

neoonwheels · 26th March 2007, 19:01

1 L on road by TATA???? I thought it wud be 1L ex showroom Delhi....

moralfibre · 26th March 2007, 19:17

Quote:

Originally Posted by neoonwheels

1 L on road by TATA???? I thought it wud be 1L ex showroom Delhi....

I wrote Tata is "managing to keep costs low" and did not mention 1L on road anywhere.

pathfinder · 26th March 2007, 19:32

I thought Bajaj already has their 'car' on road, some call it RE!!

But seriously, I really doubt if any company can give us a REAL car for 1L OTR price.

garvit2002 · 27th March 2007, 17:14

what we are going to find is two p220 engines mated together like V-twins .is Rahul Bajaj out of his mind ....lemme guess it might also be a 4stroke chetaks engine in the car .........and let me not forget the FI system ........

..................................BAJAJ PLS LEAVE THE CAR DEPTT. WE NEED BETTER BIKES

mithun · 28th March 2007, 05:23

But no-one can underestimate the power of Bajaj, they are one of the most proactive manufacturers in India(2W & 4W included).

And, never forget how Pulsar stormed the Indian biking scene !!!

benbsb29 · 28th March 2007, 10:28

Give Bajaj a chance. They have made promises and lived up to them.
If the Indian 2 wheeler scene is undergoing a sea of change, its all thanx to Bajaj. They have decided to stay off the 100cc segment altogether while others like HH and HMIL are still vying for that segment.

If Bajaj thinks they can do well as a 4 wheeler manufacturer, let them bring on their products. Eventually, it is the consumer's choice to buy or not to. They are not forcing anyone to.

All said and done, i believe that those looking at the superbikes category will not go in for a 4 wheeler at the 1 lakh tag.

grvanand · 28th March 2007, 12:00

IMO, its a matter of survival for Bajaj now due to the Tata 1 Lakh car. The most profitable business for Bajaj is the Autorickshaw and invariably, Tata 1 Lakh car would occupy that space. I am given to understand that Bajaj autorickshaw costs around Rs. 1.5 lakhs, can someone confirm the same?

askicode · 29th March 2007, 09:54

Here is an interesting twist: Bajaj open to partner Tata for small car

Source:

Bajaj open to partner Tata for small car

Rajiv Bajaj, MD, Bajaj Auto said that, Bajaj being a new-comer, a traditional car is out of its league. The company, claims to be doing something different and identifies synergies with Tata Motors . He said that, the company is open to talking to them.

Bajaj Auto, foraying into four-wheelers with a light goods carrier, is developing a car concept, to be showcased at the 2008 Auto Expo. The concept is a car as not a one-box passenger carrier, but a two-box vehicle like M800 or Alto.

The Bajaj concept, having the look and feel of a car, will be equipped with an engine that’s as powerful as M800 engine, but cheap as an auto rickshaw`s. The technology is being new, Bajaj is not interested in talking to any of the traditional leaders of the compact car market.

26th March 2007, 08:41	#1
navdeep BHPian Join Date: Sep 2006 Location: Pune Posts: 892 Thanked: 4 Times	Bajaj plans to take on Tata’s Rs 1 lakh car Fearing erosion in two-wheeler sales once Ratan Tata’s dream Rs 1-lakh car is launched, the country’s second largest two-wheeler manufacturer Baja Auto is seriously considering entering the passenger car market. Hero Honda, the country’s top bikemaker has already said it would foray into the four-wheeler market. “The JD power study says that it (Tata’s one lakh car) will affect the two-wheeler market. If that happens, then we would also manufacture cars for the market,” Bajaj Auto chairman Rahul Bajaj said on the sidelines of the eighth annual convocation of IIM Indore. Bajaj Auto, which was earlier a scooter manufacturer, shifted gears and got into the motorcycle segment when the market preference moved to the latter from scooters. Bajaj had earlier said it would launch a goods-carrier version of a light commercial vehicle in the first half of 2009. It is also expected to a launch passenger carrier version a little later. The proposed vehicle will be fitted with a 500-600cc engine and will be available in diesel, petrol and compressed natural gas versions. International consultancy firm JD Power had said early this week said that the Tatas’ people’s car would severely affect the top-end motorcycle segment in which Bajaj is the market leader with Pulsar. Tata Motor’s proposed car is likely to be launched in the third quarter of 2008. The country’s largest car manufacturer Maruti Udyog Ltd’s True Value initiative has already dented the domestic high-end motorcycle market. Under True Value, Maruti dealers sell used car certified by the company at a considerably lower price compared with a new one. Maruti sells around 75,000 used cars a year under this initiative. Story : Bajaj plans to take on Tata’s Rs 1 lakh car
	() Thanks

26th March 2007, 15:04	#2
DriverR BHPian Join Date: Mar 2007 Location: Hyderabad Posts: 414 Thanked: 526 Times	Hope they don't plan to put two Pulsars side by side! But seriously, it would be good to have this additional competition in the market segment to ensure that Tata does not become complacent. Come on Tata, you had a long lead by now. Show us the car!!!!
	() Thanks

26th March 2007, 16:49	#5
Country Road BHPian Join Date: Mar 2007 Location: Gurgaon Posts: 153 Thanked: Once	How can it affect the top end 2-wheelers? The person going in for a Rs.1 lac car and those going in for a Rs.80/90 k bike like Karizma are two different animals. The car will be a functional one. While people who buy a near 1 lac bike do not look for mere functions. They look at speed, performance, sheer looks and living their ultimate fantasy - riding a fast bike.
	() Thanks

26th March 2007, 18:49	#6
neoonwheels Senior - BHPian Join Date: Aug 2005 Location: Pune Posts: 2,065 Thanked: 1,877 Times View My Garage	Exactly.... people who buy 1 Lac bike are in a different league than people who will buy TATA 1L car... I dont think it will affect 1 L bike market... it is same as saying... "People who buy 70 Lac Merc/BMW will buy Volvo B7R for the same money....."
	() Thanks

26th March 2007, 19:01	#8
neoonwheels Senior - BHPian Join Date: Aug 2005 Location: Pune Posts: 2,065 Thanked: 1,877 Times View My Garage	1 L on road by TATA???? I thought it wud be 1L ex showroom Delhi....
	() Thanks

26th March 2007, 19:32	#10
pathfinder Newbie Join Date: Dec 2006 Location: Mumbai Posts: 21 Thanked: 0 Times	I thought Bajaj already has their 'car' on road, some call it RE!! But seriously, I really doubt if any company can give us a REAL car for 1L OTR price.
	() Thanks

27th March 2007, 17:14	#11
garvit2002 BHPian Join Date: Jan 2006 Location: Jaipur Posts: 241 Thanked: 2 Times	what we are going to find is two p220 engines mated together like V-twins .is Rahul Bajaj out of his mind ....lemme guess it might also be a 4stroke chetaks engine in the car .........and let me not forget the FI system ........ ..................................BAJAJ PLS LEAVE THE CAR DEPTT. WE NEED BETTER BIKES
	() Thanks

28th March 2007, 05:23	#12
mithun BANNED Join Date: Jan 2006 Location: Cochin Posts: 2,195 Thanked: 268 Times	But no-one can underestimate the power of Bajaj, they are one of the most proactive manufacturers in India(2W & 4W included). And, never forget how Pulsar stormed the Indian biking scene !!!
	() Thanks

28th March 2007, 10:28	#13
benbsb29 Team-BHP Support Join Date: Nov 2006 Location: Brisbane Posts: 9,969 Thanked: 13,231 Times View My Garage	Give Bajaj a chance. They have made promises and lived up to them. If the Indian 2 wheeler scene is undergoing a sea of change, its all thanx to Bajaj. They have decided to stay off the 100cc segment altogether while others like HH and HMIL are still vying for that segment. If Bajaj thinks they can do well as a 4 wheeler manufacturer, let them bring on their products. Eventually, it is the consumer's choice to buy or not to. They are not forcing anyone to. All said and done, i believe that those looking at the superbikes category will not go in for a 4 wheeler at the 1 lakh tag.
	() Thanks

28th March 2007, 12:00	#14
grvanand BHPian Join Date: Jul 2006 Location: Bangalore Posts: 211 Thanked: 0 Times	IMO, its a matter of survival for Bajaj now due to the Tata 1 Lakh car. The most profitable business for Bajaj is the Autorickshaw and invariably, Tata 1 Lakh car would occupy that space. I am given to understand that Bajaj autorickshaw costs around Rs. 1.5 lakhs, can someone confirm the same?
	() Thanks

29th March 2007, 09:54	#15
askicode BHPian Join Date: Mar 2006 Location: Bangalore Posts: 174 Thanked: 73 Times	Here is an interesting twist: Bajaj open to partner Tata for small car Source: Bajaj open to partner Tata for small car Rajiv Bajaj, MD, Bajaj Auto said that, Bajaj being a new-comer, a traditional car is out of its league. The company, claims to be doing something different and identifies synergies with Tata Motors . He said that, the company is open to talking to them. Bajaj Auto, foraying into four-wheelers with a light goods carrier, is developing a car concept, to be showcased at the 2008 Auto Expo. The concept is a car as not a one-box passenger carrier, but a two-box vehicle like M800 or Alto. The Bajaj concept, having the look and feel of a car, will be equipped with an engine that’s as powerful as M800 engine, but cheap as an auto rickshaw`s. The technology is being new, Bajaj is not interested in talking to any of the traditional leaders of the compact car market.
	() Thanks