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Bajaj
ICMR Case Collection
Icfai Center for Management Research

Bajaj Auto Ltd.: Overtaken in the Indian Scooter Market
BSTR216 - Teaching Note

2006, The Icfai Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means- electronic or mechanical, without permission. To order copies, call 0091-40-2343-0462/63 or write to Icfai Center for Management Research, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email info@icmrindia.org. Website: www.icmrindia.org

BSTR/216

Bajaj Auto Ltd.: Overtaken in the Indian Scooter Market
TEACHING NOTE
SUMMARY:
Bajaj Auto Limited (BAL) is one of the leading players in the Indian two-wheeler market, the second largest two-wheeler market in the world. The case traces the company’s rise to dominance in the scooter segment of the market, and its eventual fall, against a backdrop of changes in customer tastes and preferences. It describes the reasons for the shift in demand and discusses the initiatives that the company undertook to regain lost ground. The case also discusses the competition in the Indian scooter market, and ends with a brief discussion on recent developments in the two-wheeler market.

TEACHING OBJECTIVES AND AUDIENCE:
This case study is intended to help students to: Examine the evolution of an industry -- specifically, the Indian two-wheeler industry -over time, and the challenges faced by the dominant players with the industry being liberalized and opened up to competition. Appreciate the impact of the economic, social, and cultural changes on the fortunes of an industry. Analyze the strategies adopted by a company to stay relevant in a changing environment. Understand the importance of keeping track of changing customer changing needs and preferences and adopting a customer-oriented product strategy. Gain insights into competition in the Indian two-wheeler


References: & Suggested Readings: 1. How hamara bajaj became a sign of independent India, www.moneycontrol.com, August 1, 2006. 2. Surajeet Das Gupta, New! Improved! Bajaj? www.business-standard.com, July 8, 2006. 3. Bajaj Auto to invest Rs. 1,500 crore; to expand capacity to 51 lakh units, www.domain-b.com, March 13, 2006. 4. Bajaj retires Chetak, Super: dealers stop taking orders, http://news.hitavadaonline.com, March 10, 2006. 5. Hero Honda launches “Just 4her”, www.herohonda.com, January 20, 2006. 6. Bajaj bids adieu to hamara Chetak, http://bsnl.in, January 04, 2006. 7. Bajaj slams brakes on Chetak, www.indiacar.com, January 03, 2006. 8. Bajaj motorcycles lead industry growth, www.domain-b.com, 2005. 9. Two wheelers: looking back, www.automonitor.com, in 2005. 10. Neha Kaushik, The scooter surge, www.thehindubusinessline.com, August 05, 2004. 11. N. Shatrujeet, Bajaj Chetak: Riding on a value system, www.agencyfaqs.com, 2004. 12. Gaurav Choudhury, Innovative scooter models on cards, www.tribuneindia.com, September 21, 2003. 13. K. Krishnakumar, Two wheelers: charge of the motorcycles, www.thehindubusinessline.com, May 19, 2002. 14. Manoj Kumar & Shveta Pathak, Youths embrace high-power bikes, www.tribuneindia.com, April 2002. 15. Sandeep Unnithan, The doughty old scooter is overtaken by the motorcycle-despite a spirited fight back, www.india-today.com, April 2001. 16. N. Shatrujeet, Lintas renews tryst with Hamaara Bajaj anthem, www.agencyfaqs.com, September 29, 2001. 17. Brian Carvalho and Swati Prasad, Bike Wars, www.india-today, September 16, 2001. 18. Economy Models of Bajaj Chetak, Super to be Cheaper by Rs 5,000-8,000, www.bajajauto.com, December 2000. 19. Neena Haridas, The two-wheeler market in India is moving towards motorcycles, www.rediff.com, January, 2000. 20. Industry watch: Two-wheelers, http://iw.sify.com, December 18, 1999. 21. www.scootervillemn.com. 22. www.bajajauto.com. 23. www.automonitor.com. 24. www.indiainfoline.com. 25. http://auto.indiamart.com. 26. www.indiacar.com. 27. www.premjis.com. 28. http://siadipp.nic.in. 6
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