It was no brainer that Royal Enfield will eventually have a couple of competitors to deal with. But looks like, Bajaj is the first company to announce this intentions publicly.
As per Business standard, Rajiv Bajaj, MD, Bajaj Motorcycles admitted that Bajaj will enter the growing 350cc and above segment soon, with a new product. However, there’s a high chance of this new product not being branded as an Avenger, due to its presence in the mass market 150cc segment. Bikes with displacement 250cc and above is usually perceived as a lifestyle segment and consumers in this segment wants to relate to a known and special brand and that’s why there’s a huge fan following for Royal Enfield. So Bajaj is sure not to position this new motorcycle as an extension of the Avenger brand.
Currently, Bajaj has the Pulsar CS400 in this category. However, the CS400 that was showcased to us at the 2014 Auto Expo was a concept. But like the top honcho of the company said, they would want to create a new brand to take on Royal Enfield. So if the CS400 eventually makes it to production, it could be launched with a new brand.
"Definitely. Every mature segment becomes a two-horse race eventually in any given market. The entire market is monopolised today by one person.... there is room for a second person. We can create a brand for that space. I am sure everyone else is thinking about it. The success of Royal Enfield is not lost out on anyone," said Rajiv Bajaj, MD, Bajaj Motorcycles.
"It could be. But, would a fellow buying a Royal Enfield 350-500 consider a brand like Avenger suitable when he sees lots of people on Avenger 150? I'm not sure. I would not say no, but I'm not fully convinced that's the best way. I'm not sure if an Avenger can impart the same charm as, say, a Royal Enfield," he added.
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