“Competition in two wheelers is a war”
V Chandrasekaran , General Manager, Service, two-Wheelers of Bajaj Auto Ltd. was in Kathmandu recently to inaugurate, what is called, the state-of-art service centre for Bajaj motorcycles at Dillibazar, Kathmandu set up with Rs. 10 million investment by Bajaj's authorised dealer in Nepal Hansaraj Hulaschand & Co (P) Ltd, a member of Golchha Organisation. He talked to Nubiz on the sidelines of the inaugural programme explaining the trends in two-wheeler market. Excerpts:
What is Bajaj offering with this new workshop?
This is one of the states-of-art service centre that we create across our Bajaj Network whether in India or abroad. Golchha Organisation have created a lovely workshop here for the end customers offering high level of visual confidence with a see-through workshop, vertical tools, pneumatic tools, digital oil dispensers and every tool available at arms length distance. And you will find this workshop much more similar to a showroom - neat, clean, highly ventilated with good lighting, spacious and lot of parking space. This is the first of its kind workshop in Nepal. Definitely Bajaj customers will have very good experience once they come here. They will be seated in a nice cozy atmosphere, see how their vehicles are getting attended to, how the genuine spare parts are being put in. We are looking for around 200-300 vehicle per day coming for servicing here.
Any other plans of Bajaj for Nepal?
We will keep adding value added services to Bajaj customers through Golchha Organisation. Of course whatever new product comes from Bajaj Auto will be made available to the customers here through Golchha. Nepali customers will get the same product in the same technology as we do in Pune.
How is the competition among the two wheeler companies and from the small car companies?
I will call two wheeler competition a war not just simple competition. Literally everywhere and in every country there's cut-throat competition. But it is good to note that Golchha Organisation is the leader in this market with 50 per cent market share. Besides the product and price, it is this kind of quality service that makes a difference to the customers because what they look for is convenience and comfort. So, this will give a cutting edge in the overall business.
In terms of competition from small car, yes, there is scope if the manufacturers come out with smaller car at attractive price. Among the technological industries, automobile has definitely produced cost effective manufacturing system. So low cost car is not far off, it is nearby, and very soon one will see that.
Cars are getting cheaper and bikes are getting expensive. How has that affected the competition?
I slightly disagree. Motorcycles were expensive earlier. A 100cc bike was costing INR. 45,000. But now it's available for INR. 30,000 or even less. Motorcycles are always going down in prices. It's taxation that makes the difference in cars. With the technology developing, single cylinder, two cylinders, three cylinders cars are being made. So, low cost cars versions are possible. Definitely in the future one can look at manufacturability, availability and usage also. Today when you have A,B,C,D,E segments in car, why not one car for socially and economically "C" class customer as well? You can look for that.
What are the recent trends in two-wheelers?
The whole industry is moving towards new technology. All these days, mileage was one of the core issues with escalating fuel prices. But now new technologies like fuel injunction technology are bobbing up promptly to save fuel. And the companies are improving also on style and power and offering much more comfort. Radical improvements are being made by Bajaj Auto by introducing gas shock observers, exhausters, alloy wheels, DTSI, twin engine spark ignition. This kind of technological advantages are coming out very fast. That's where the competitive gap gets wider.
Are there any advantages for customers from this workshop that will help them to reduce their fuel cost or achieve more efficiency?
After the infrastructure creation, this is where we will be focusing on, i.e. educating the customers in the value added services. They can understand the frequency of services, maintenance services, safe riding tips etc. So, it will be a win-win situation for Golchha Organisation, the customers and Bajaj Auto.
