Bajaj Auto contemplating Royal Enfield rival: Report

Popular two-wheeler maker Bajaj Auto is planning to make a foray into the middle-weight motorcycle segment in India, which is now dominated by the Eicher Motors-owned Royal Enfield. Speaking to Business Standard, Rajiv Bajaj, managing director, Bajaj Auto, hinted at the company's plans in this regard.

"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," Rajiv Bajaj told the publication when asked if Bajaj is planning to enter this segment.

The company is likely to consider a new brand in this segment as it feels that the Avenger, which is already in the market, may not be able to pull the crowd. Rajiv Bajaj did not hide his apprehension about the company's Avenger brand making its way into this new segment. He said he is not convinced that a person buying Royal Enfield 350-500 cc would consider an Avenger in the same range as an alternative when there are so many Avenger 150 motorcycles on the road.

Royal Enfield, the dominant power in the middle-weight motorcycle segment, sold 6 lakh units in Financial Year 2016 (FY16), posting 52 percent growth from FY 15. The company is currently setting up a third plant on the outskirts of Chennai, which will take its total production capacity to 9 lakh by 2018.

[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]