38018875 the Bajaj Chetak Project Info

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The Bajaj Chetak was a popular Indian -made motor scooter produced by the Bajaj Auto company. [2] The Chetak is named after Chetak , the legendary horse of Indian warrior Rana Pratap Singh . Originally based on the Italian Vespa Sprint , the Chetak was an affordable means of transportation for millions of Indian families for decades and termed as humara bajaj. [3] Around 1980, the Vespa-licensed design was replaced with an all new in-house design that shared the same general appearance and style. During its heyday its chief competitor was LML NV made by LML India as a licensed copy of the Vespa PX 150. In the face of rising competition from Bikes and Cars, the Chetak lost ground in India , and production was discontinued in 2005. Note:- Company has stopped manufacturing this model. The Bajaj Chetak 150 MT is an old-time favourite from the house of Bajaj. This 150cc scooter will be on its way out by the year 2000. Newer

Transcript of 38018875 the Bajaj Chetak Project Info

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The Bajaj Chetak was a popular Indian-made motor scooter produced by the Bajaj Auto company.[2] The Chetak is named after Chetak, the legendary horse of Indian warrior Rana Pratap Singh.

Originally based on the Italian Vespa Sprint, the Chetak was an affordable means of transportation for millions of Indian families for decades and termed as humara bajaj.[3] Around 1980, the Vespa-licensed design was replaced with an all new in-house design that shared the same general appearance and style. During its heyday its chief competitor was LML NV made by LML India as a licensed copy of the Vespa PX 150. In the face of rising competition from Bikes and Cars, the Chetak lost ground in India, and production was discontinued in 2005.

Note:- Company has stopped manufacturing this model.The Bajaj Chetak 150 MT is an old-time favourite from the house of Bajaj. This 150cc scooter will be on its way out by the year 2000. Newer variations are undergoing trials in the R&D department, but for now, the Chetak is one of the best-selling two-wheelers in the semi-urban and rural markets.

A large fuel tank and an average fuel consumption figure of 42 kpl leads to a reasonable interval between fuel tank toppings. The problem is the two-stroke engine, which generates the seven-plus bhp that powers the bike. It consumes more petrol as compared to the rest. The plus points are a tough body, low maintenance and initial cost and good resale

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value. The minus points are poor averages, unbalanced ride, stiff gear-shifting, lacklustre braking and higher pollution levels. This model is not Y2K proof.

TECHNICAL SPECIFICATIONS OF BAJAJ CHETAK

EngineEngine : Two stroke/petrol Transmission : Four-speedDisplacement : 145. 45ccTachometer : NoMax Power : 7.48 hp@5500 rpm Max torque: 1.1kgm@3500 rpmGround Clearance : 145mmIgnition : ElectronicDry Weight: 103kgFuel tank Capacity : 6.5 litresBattery: 12VF/R suspension : Spring-loaded AbsorberR/R suspension : Hydraulic absorber Max Speed : 85kphFront Tyre size : 3.50x10.4 PrRear Tyre size : 3.50x10.4 Pr

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Wheelbase : 1230mm

Message from the president: We have sold the last of our Chetak scooters and Bajaj Auto will not be building any more of these classics.  Bajaj Auto has"retired" the Chetak tooling and closed the plant.  They have consolidated their production into two of their other Indian factories and have moved on to production of small engine motorcycles. There is no truth to the rumor that Bajaj Auto will be making more Chetaks. There are still a few Chetaks available at some Bajaj dealers but sales move too quickly for us to monitor accurately.   I'm keeping a Legend and Chetak for my personal use, and no, they are not for sale. Bajaj Auto continues to supply us with parts and we will continue to support these fine machines. The sad passing of a legendary motor scooter ...and life goes on. Regards,Al Kolvites

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Bajaj Chetak, an Indian-made scooter, is counted among the most selling two-wheelers in semi-urban and rural markets. Chetak was holds and influential place in the two-wheeler market of India. It was an affordable way of transport for decades to millions of Indian families. The name of Bajaj Chetak Scooter has been derived from the legendary horse Chetak of the Indian warrior Rana Pratap Singh.

A tough body, low maintenance and initial cost and good resale value are the key attributes that are related the Chetak bearing trust seal from the house of Bajaj.

Note: Chetak 150 MT is the old-time model of Bajaj. It was the clone of Vespa.

Company Stroke Maximum Power DisplacementBajaj Auto Ltd. 2-Stroke 7.5 bhp (5.93 kW) @ 5500 rpm 145.45 cc

Striking FeaturesThe features of Bajaj Chetak is one of the best among all the scooters. It

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had always gone under upgradation according to the latest technological demand for two wheelers. Few of the features of the Bajaj Scooter are given below.

12 volt electrical system. Maximum weight 564 lbs.

Very low emission 4-stroke engine.

Rigid monocoque chassis made of high-strength alloy steel.

Electric and kick start.

Color VariantsBajaj Chetak Scooters are not very rich in color variants but whatever color it has is soothing to the eyes. The scooter is available in the market in the three following colors.

Silver Metallic Jade

Metallic Black

Technical SpecificationsIn this table one can find detail information about the dimension of the scooter, the engine, electrical system, chasis, suspension, brakes, tyres, and fuel tank.

Engine

Overall height 1080 mm

Overall length 1770 mm

Overall Width 670 mm

Wheelbase 1230 mm

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Ground Clearance 135 mm

Saddle Height 830 mm

Minimum Turning Radius

1.56 m

Kerb Weight 103 kg

Engine5

Type 2 stroke

Cooling Type Forced Air Cooled

Displacement 145.45 cc

Max Power 7.5 bhp( 5.93 kW) @ 5500 rpm

Max Torque 10.8 Nm @ 3500 rpm

Ignition Type CDI Electronic

Transmission Type 4-speed, Constant Mesh

Clutch Type Wet Multidisc

Electrical System

System 12V AC

Head Light 35/35W

Horn 12 V AC

Chassis

Chassis Type Monocoque

Maximum Payload 140 kg

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Suspension

Front Variable rate coil spring & double acting Shock Absorber

Rear Variable rate coil spring & double acting Shock Absorber

Brakes

Front Brakes Drum

Rear Brakes Drum

Tyres

Front Tyre Size 3.50 x 10in - 4PR

Rear Tyre Size 3.50 x 10in - 4PR

Fuel Tank

Fuel Tank Capacity 6 litres

Reserve Capacity 1.4 litres

Bajaj Chetak (1972-2005) :RIP

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Brand : Bajaj Chetak Company : Bajaj Auto Ltd

The brand which ruled the Indian roads have been laid to rest. Bajaj has officially stopped the production of Bajaj Chetak from December 2005. The stocks will last may be upto March 2006. The company says that the product no longer have any relevance to the customer. To quote Rajiv bajaj " Any one who clings to the past is a failure".I owned a Chetak: a gift from my father for having secured admission to MBA program. It was in the year 1996. Later I exchanged it for a bike in 2001. Still Chetak lingers in me ( or rather haunts me) in the form of " Back Pain".The brand which was launched in 1972 virtually owned the two wheeler segment. If reports are to be believed, Chetak was an unavoidable dowry in 1970's and 80's. It had a waiting period of more than 10 years ( can you believe it ? ) and now here I am after 34 years, writing the epitaph of this brand. The brand which was named after the legendary stallion of the Rajput king Maharana Pratap, was known for the reliability and sturdiness. The brand thrived during the license raj with virtually no competition. It was during 1990-91 that the brand began the journey to the end.Bajaj Chetak had a huge brand equity . The brand had the persona of a "

work h orse". With reasonable price and the low maintenance cost made this product a huge hit among the middle class Indians.

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Promoted along the base line " Hamara Bajaj", this was the Indian Family vehicle - a position now owned by Maruthi 800.But then How can a brand that was so popular and successful fail?Frankly, I am not sure. But here is what I think about this brand...The primary reason is that the Brand forgot the customers. Another case of Marketing Myopia. The company failed to understand the changing perception of the customers towards scooters. Rather than looking at the customers, the company focused on influencing Government to block the opening up of economy. Bajaj never did anything with the product. For 40 years Chetak had the same look, same quality and style.During the mid nineties the company realised lately that the segment has shifted to motorcycles. Scooters were no longer the option. But did the company made a mistake in discarding the scooter segment ? Looking at the way the share prices are going, the market thinks that Bajaj Auto

made the right decision. But I think that th ey made a mistake in leaving the scooter segment completely. Contrary to expectation, the scooter segment has not died. It has only changed.Chetak lost its identity some where during the nineties. What should be the future of the brand : no body knew. It was only in 2004 that company made any change in Chetak. In 1994 Bajaj introduced Classic another scooter with same style as Chetak, but failed. Bajaj never was serious about product development. The R&D spent for a long time was a miniscule 1%. The average cycle time for the new product development was 4-5 years compared to 2-3 years of Japanese competitors.Even after the opening up of economy, the scooter segment did not witness much competition. The players like Vespa did not had much of success in this segment. Kinetic Honda managed to carve a niche with its gearless scooters.

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Another segment which was growing was the scooterette segment which was dominated by TVS scooty.Bajaj never seriously looked at customer perception about Chetak. The product had serious problems like starting trouble and riding comfort. The " Tilting the chetak to the side for starting " was a common joke. Did the company do anything for that ? noThere was nothing wrong with the Promotion. " Hamara Bajaj " and " No one can beat a Bajaj " were famous base lines. There was nothing wrong with distribution and the pricing was very reasonable. The major problem was in the first P : Product.So without addressing any problems regarding the product , can you expect the customer to buy the product ?Bajaj was never a leader in technology ( now they are !!!). They never bothered to and paid the price . Had Chetak pioneered Electric start, had it provided more riding comfort, it could have survived.Somebody have just beat the Bajaj........ the customer!

Bajaj Chetak 150 cc Scooter Review

by Mukesh Kumar (India)

lassic Styling of the Bajaj Chetak 150

I had bought this Bajaj Chetak 150cc scooter five years back and till now I've had an awesome experience with it. I love this scooter very much. It has stylish looks and indeed good mileage too! So, one can have both style and mileage both at the same time.

It is great for going to the market or the movies and having fun with friends over there. It has a 150cc engine, which makes it powerful

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enough for carrying heavy loads as well.

Although it is not suitable for racing competitions, it is an ideal piece for a small family. Moreover, every part of this scooter is made very stylish so that one can easily distinguish it. I am very glad to recommend you this scooter.

Comments forBajaj Chetak 150 cc Scooter Review

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May 31, 2010Rating

Acceleration by: Brian Fulton @ verizon.net

I love my 05 Chetak 150,But I wish it would accelerate a little faster. Any tips out there to help it get out of its own way? Blog away. I am a man of many motorcycles and a back injury limits me to scooters.

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Scooter buit for off-road riding? by: Rand

I own a Chinese made scooter and have not have much trouble with it. I have had to purchase a few inexpensive parts from the internet at scooterstock.com but it always ran well. However, I have wondered if they make any small scooters that are street legal but still designed for light off-road trail riding (i.e. more aggressive tires and higher suspension etc.)? I would like to find one like that to mount on the back of my camp trailer bumper. Was this Baja such a scooter?

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Suitable Replacement by: Jim Zeiser

About the closest thing to a Bajaj right now is the Genuine Stella. It has a two stroke motor and is not available in California. There will be a four stroke motor soon and as a scooter with hand shift and hailing from India, the Stella will be as close to a Bajaj as you can get

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No longer available by: Kathi

Unfortunately, Bajaj Auto is no longer making the Chetak, a true classic. In fact, I'm not sure they're making scooters at all.

Too bad, because this sounds like a winner...

You might still be able to find one used if you look around...

COMPANY PROFILE The Bajaj group was founded in 1926 by Jamnalal Bajaj. In the mid-1940s, Bajaj Auto Limited(BAL) started as an importer of two- and

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three-wheelers. In 1959, the company secured a license from the Government of India (GoI) to manufacture two- and three-wheelers. In 1960, BTCL was renamed Bajaj Auto Ltd and in the same year it entered into a technical collaboration with Piaggio for the manufacture of scooters. With its collaboration with Piaggio coming to an end in the early 1970s, BAL started manufacturing scooters under the Bajaj brand.

BAJAJ CHETAK: A BRIEF INTRODUCTION BAJAJ CHETAK was a popular Indian made motor scooter produced by the Bajaj auto company.

Chetak was the only choice for millions of Indian families as an affordable way of transport for decades.

The Chetak, BAL's first scooter model under the Bajaj brand, wasintroduced in 1972. The Chetak, a geared scooter, had reigned over theIndian two-wheeler market in the late 1970s to early 1990s

In the 1970s and 1980s, scooters dominated the Indian two-wheeler market.

Most middle-class Indians preferred scooters because of their durability, low maintenance costs, and versatility and compared to the motorcycles available in India were heavier and not as fuel efficient as scooters. and were even costlier.

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WHAT IS PRODUCT LIFE CYCLE? Productlif e cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures. It is based on the 4 pivotal points of its core understanding: That products have a limited life. Also product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. The profits rise and fall at different stages of product life cycle. Lastly products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage.

SCHEMATIC GRAPH OF PLC

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STAGES OF PRODUCT LIFE CYCLE Introduction stage Firm tries to promote demand for its new

offering, inform the market about it, give free samples to enticeconsumers to make a trial purchase, and explain its features, uses,and benefits.

Growthstage Sales climb quickly as new customers join early users who now are repurchasing the item. Maturitystage Industry sales eventually reach a saturation level at which further expansion is difficult. Decline stage Sales fall and profits decline.

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STAGE I - INTRODUCTION Starting Price Quoted in the start was roughly between Rs. 8000 - 9000/- The company·s first scooter model, Chetak(intentionally it was given the name of Maratha ruler Chatrapathi Shivaji·s horse·s name), was launched in 1972. Chetak remained Bajaj·s flagship brand for over 10 years. There was a time when people had to wait hell lot of a time after pre booking their Chetak. The Launch of Bajaj Chetak was mainly targeted at economical Class and people could afford it considering its parallel competition in the same segment market. Late 70s had been the Golden period for the Bajaj scooters, especially the Chetak. In 1977 Bajaj Auto claimed to have sold a lakh of Chetaks in just one FY.

STAGE II - GROWTH Some of the Significant changes brought about in this scooter was

change in many tech specs, mainly compared to its competitonfrom Motorbikes, Mopeds which were gaining grounds in term ofmarket share.

Over 2 and a half decades until the halt of 1995 the company did

not face any stiff competition from any 2 wheeler market segment,apart from the introduction of minor changes in its performanceparameters meaning more augmented changes in the scooter itselflike colour some peripheral outer changes in parts

Some of the competition were from the scooter segments LML

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Vespa Scooters, Automobile Products of India's Lambretta.

The Price wars was not the criteria for the competition as the demand itself surpassed the supply and in India owning scooter at that time was a status symbol. Bajaj Chetak had targeted the soft spot of what most Indian people in that

time desired in their two wheelers which was durability, low maintenancecosts, and versatility, and the ease of its use which made it the mostdependable and flexible transport mode.

Briefly this Scooter is a comfortable riding machine, much economical to

your bank balance as compared to bikes, long lasting and durable, does notneed much repairs and when it does the spares are easily available andinexpensive.

The main marketing strategy used by Bajaj Chetak was mainly targetting

the emerging middle class in India and adding the feeling of 'we' or the feelingof belongingness by strong sentimental slogans like "Hamara Bajaj". TheApproach of this Marketing Strategy adopted by Chetak was Non-Pragmatic

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STAGE III- MATURITY In the late 1990s, the Indian two-wheeler market witnessed a shift in consumer preferences. The popularity of geared scooters began to wane while that of motorcycles soared. There were various reasons for the shift -India was undergoing a

demographic change, with the proportion of younger people in thepopulation growing significantly; the economy was growing, which increasedthe disposable incomes of the middle class; also, many newer models ofmotorcycles, with improved designs and modern technology had becomeavailable in the market.

While these changes were taking place in the market, the features of scooters, especially those of the Bajaj Chetak, remained essentially unchanged.

STAGE IV ± DECLINE The primary reason is that the Brand forgot the customers.

Another case of Marketing Myopia. The company failed tounderstand the changing perception of the customerstowards scooters. Rather than looking at the customers, thecompany focused on influencing Government to block theopening up of economy. Bajaj never did anything with theproduct. For 40 years Chetak had the same look, samequality and style.

During the mid nineties the company realised lately that the

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segment has shifted to motorcycles. Scooters were no longerthe option. But did the company made a mistake indiscarding the scooter segment ? Looking at the way theshare prices are going, the market

Reasons for Failure?or Decline? Bajaj never was serious about product development. The

R&D spent for a long time was a miniscule 1%. The averagecycle time for the new product development was 4-5 yearscompared to 2-3 years of Japanese competitors.

Even after the opening up of economy, the scooter segment did not witness much competition. The players like Vespa did not had much of success in this

segment. Kinetic Honda managed to carve a niche with itsgearless scooters. Another segment which was growing was thescooterette segment which was dominated by TVS scooty.

The players like Vespa did not had much of success in this

segment. Kinetic Honda managed to carve a niche with itsgearless scooters. Another segment which was growing wasthe scooterette segment which was dominated by TVS scooty.

Bajaj never seriously looked at customer perception about

Chetak. The product had serious problems like starting troubleand riding comfort. The " Tilting the chetak to the side for

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starting " was a common joke. Did the company do anythingfor that ? No

There was nothing wrong with the Promotion. " Hamara

Bajaj " and " No one can beat a Bajaj " were famous baselines. There was nothing wrong with distribution and thepricing was very reasonable. The major problem was in thefirst P : Product.

OUR OWN STRATEGY PRICE: Bajaj Chetak's price was truly affordable.

But the new motor cycles entering the twowheeler segment offered better technology& fuel efficiency than Bajaj Chetak atalmost same price.

Price in our view was never a issue associated with this product, it

perfectly suited the profile of the product in the market whethertaken earlier in mid seventies or late nineties as it was according toits offerings.

It was perfectly targeting the economical class which was itself a part of the large mass of population itself, meaning affordable range.

PRODUCT: The company should look upon its R&D and improve the overall looks of Bajaj Chetak. It should make efforts to change the quality & style of the

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scooter to suit the tastes & preferences of its customers. The product had serious problems like starting trouble & riding comfort, which need to be eliminated. Auto start feature which was prominent should have been introduced. Though counted as efficient in many terms Fuel efficiency

was a major issue. In our view the combustion efficiency of thescooter needed to be improved and efficiency in terms ofmileage needed a major boost.

PROMOTION& A DVERTISING: The main marketing strategy used by Bajaj Chetak was

mainly targeting the emerging middle class in India and adding the feeling of 'we' or the feeling of belongingness by strong sentimental slogans like "Hamara Bajaj".

The Approach of this Marketing Strategy adopted by Chetak was Non-Pragmatic Bajaj Chetak should come out with various schemes &

incentives, no warranty schemes were wailed by thecompany or ad-don products and service centers were lessin number which should have been more to ease customersupport and product maintenance centers.

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Bajaj history (abridged)

In the early to mid 1960s Vespa outsourced to India to build Vespa Sprints. The Indian factory had to uphold Vespa's quality assurance and factory system. The relationship was short lived as legal issues came into play. The end product was that Bajaj purchased the factory from Vespa. After this happened the Bajaj badge began to appear. At first, with any brand transition, the bikes had a Vespa and a Bajaj badge on the legshield. You can find these bikes in the USA. Or you may be riding a Vespa Sprint that was made in India and not know it.

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As you can see in the photograph above of this classic Bajaj, it's basically a Vespa Sprint with its trapezoid headset. It's a handsome bike.The "Chetak" was named after a famous horse that belonged to a Indian Prince, I believe. The horse belonged to him and helped a lot in battle and such. Pictured above is a 1980s Chetak I believe. In my opinion, much more handsome than the newer 4-stroke Bajaj Chetaks. These bikes were 2-stroke and can be found in the states. They often sell for less than a Vespa of similar model.

In the 1980s Bajaj tried to sell in the USA. It didn't go well. It returned again in the early 2000s with Al Kolvites as the president of Bajaj USA. 4-stroke versions were imported. Bajaj USA died around 2006 and became Argo USA -- Chinese plastic scoots. A strong Bajaj culture existed via Bajaj Yahoo Group while the bikes were being sold. Note: some Bajaj are still available new as 2005 models. Check with dealers. The only thing about the newer Bajaj's that I could do without is the horncast and a little more chrome, say floor rail kit and a legshield trim would have been an added bonus.Like its predecessor and its competition the Chetaks & Legends are work horses, like the Vespa P200s, and take a heck of beating and keep on running. The roads in India are harsh with pot holes and the Bajaj was built to withstand the harsh roads and to be easily worked on and repaired.

Like the Stella (LML), Vespa P-Series, the Chetak is the last of line of the work horse scooters. The Stella and Vespa horncasts are much more handsome than the Chetak and there is more chrome on the other bikes, but I have spoken with dealers and the overall report is that the 4-stroke Chetaks have way less problems than its 2-stroke rivals. I intend to give my one-year-old son my Chetak when he gets his license. My Chetak should run for a long long time. I ride hard and it remains to be very trustworthy and dependable.

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If I was to buy my first scooter all over again, I'd buy a Vespa PX150 from Vespa Mechanicsburg for $3600 (sale price -- only have 3 left). My wife's Chetak costs $1999 and you just can't beat that price. Now the Chetak is $3000 and the Stella is $3300. Genuine Scooters runs a very smart marketing campaign for its Stella, because the bike uses Vespa aftermarket products. So this makes upgrades and accessories CHEAPER and easier to find. I have no intention of selling my Chetak, because it is a tank of a scoot, but if you're purchasing you should consider all your options and what you plan to do with your scoot . . . ie buy a Stella or PX and put a DR177 kit on it for a cheap speed/power upgrade. Or buy a Vespa for resale value. If you're looking to be accepted into the classic/vintage culture either a Vespa P-series or Genuine Scooter (Stella) will get you in. But if you're looking for a dependable daily rider that requires next to no maintenance, a 4-stroke Bajaj Chetak or Legend will deliver that to you at an affordable price.

If you come across a Bajaj from 1980 or earlier for a good price (it will be cheaper than a similar Vespa) it is worth picking up. The vintage crowd will accept you as well. And the bike is prettier than the newer bikes.

Bajaj Auto Limited

tatistics: Public Company Incorporated: 1945 as M/s Bachraj Trading Ltd. Employees: 17,200 Sales: Rs 42.16 billion ($903.36 million)(2000) Stock Exchanges: Pune Mumbai Delhi London Berlin Frankfurt

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Munich Ticker Symbols: BAJAJAUTO 490 BJATq.L 893361.BE 893361.F 893361.MU NAIC: 336991 Motorcycle, Bicycle, and Parts Manufacturing

Company Perspectives:

Our Philosophy: We approach our responsibilities with ambition and resourcefulness. We organise ourselves for a transparent and harmonious flow of work. We respect sound theory and encourage creative experimentation. And we make our workplace a source of pride. We believe in: Transparency--a commitment that the business is managed along transparent lines. Fairness&mdashø all stakeholders in the Company, but especially to minority shareholders. Disclosure--of all relevant financial and non-financial information in an easily understood manner. Supervision--of the Company's activities by a professionally competent and independent board of directors.

Key Dates:

1945: Bajaj Auto is founded. 1960: Rahul Bajaj becomes the Indian licensee for Vespa scooters. 1977: Technical collaboration with Piaggio ends. 1984: Work begins on a second plant. 1998: Bajaj plans to build its third plant to meet demand. 2000: Thousands of workers are laid off to cut costs.

Company History:

Bajaj Auto Limited is India's largest manufacturer of scooters and motorcycles. The company generally has lagged behind its Japanese

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rivals in technology, but has invested heavily to catch up. Its strong suit is high-volume production; it is the lowest-cost scooter maker in the world. Although publicly owned, the company has been controlled by the Bajaj family since its founding.

Origins

The Bajaj Group was formed in the first days of India's independence from Britain. Its founder, Jamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly referred to him as a fifth son. 'Whenever I spoke of wealthy men becoming the trustees of their wealth for the common good I always had this merchant prince principally in mind,' said the Mahatma after Jamnalal's death.

Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942. Kamalnayan, however, was preoccupied with India's struggle for independence. After this was achieved, in 1947, Kamalnayan consolidated and diversified the group, branching into cement, ayurvedic medicines, electrical equipment, and appliances, as well as scooters.

The precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj Trading Ltd. It began selling imported two- and three-wheeled vehicles in 1948 and obtained a manufacturing license from the government 11 years later. The next year, 1960, Bajaj Auto became a public limited company.

Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of Italy. In 1960, at the age of 22, he became the Indian licensee for the make; Bajaj Auto began producing its first two-wheelers the next year.

Rahul Bajaj became the group's chief executive officer in 1968 after first picking up an MBA at Harvard. He lived next to the factory in Pune, an industrial city three hours' drive from Bombay. The company had an annual turnover of Rs 72 million at the time. By 1970, the company had

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produced 100,000 vehicles. The oil crisis soon drove cars off the roads in favor of two-wheelers, much cheaper to buy and many times more fuel-efficient.

A number of new models were introduced in the 1970s, including the three-wheeler goods carrier and Bajaj Chetak early in the decade and the Bajaj Super and three-wheeled, rear engine Autorickshaw in 1976 and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-77 fiscal year alone.

The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward, Piaggio, maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj scooter sales in the United States, United Kingdom, West Germany, and Hong Kong. Bajaj's scooter exports plummeted from Rs 133.2 million in 1980-81 to Rs 52 million ($5.4 million) in 1981-82, although total revenues rose five percent to Rs 1.16 billion. Pretax profits were cut in half, to Rs 63 million.

New Competition in the 1980s

Japanese and Italian scooter companies began entering the Indian market in the early 1980s. Although some boasted superior technology and flashier brands, Bajaj Auto had built up several advantages in the previous decades. Its customers liked the durability of the product and the ready availability of maintenance; the company's distributors permeated the country.

The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle was immediately successful, and the company aimed to be able to make 60,000 of them a year by 1985. Capacity was the most important constraint for the Indian motorcycle industry. Although the country's total production rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies like rival Lohia Machines had difficulty meeting demand. Bajaj Auto's advance orders for one of its new mini-

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motorcycles amounted to $57 million. Work on a new plant at Waluj, Aurangabad commenced in January 1984.

The 1986-87 fiscal year saw the introduction of the Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles. The company was making 500,000 vehicles a year at this point.

Although Rahul Bajaj credited much of his company's success with its focus on one type of product, he did attempt to diversify into tractor-trailers. In 1987 his attempt to buy control of Ahsok Leyland failed.

The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year later. About this time, the Indian government was initiating a program of market liberalization, doing away with the old 'license raj' system, which limited the amount of investment any one company could make in a particular industry.

A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul Bajaj told the Financial Times that his company was too large to be considered a potential collaborator by Japanese firms. It was hoping to increase its exports, which then amounted to just five percent of sales. The company began by shipping a few thousand vehicles a year to neighboring Sri Lanka and Bangladesh, but soon was reaching markets in Europe, Latin America, Africa, and West Asia. Its domestic market share, barely less than 50 percent, was slowly slipping.

By 1994, Bajaj also was contemplating high-volume, low-cost car manufacture. Several of Bajaj's rivals were looking at this market as well, which was being rapidly liberalized by the Indian government.

Bajaj Auto produced one million vehicles in the 1994-95 fiscal year. The company was the world's fourth largest manufacturer of two-wheelers, behind Japan's Honda, Suzuki, and Kawasaki. New models included the Bajaj Classic and the Bajaj Super Excel. Bajaj also signed development agreements with two Japanese engineering firms, Kubota and Tokyo R

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& D. Bajaj's most popular models cost about Rs 20,000. 'You just can't beat a Bajaj,' stated the company's marketing slogan.

The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw were introduced in 1997. The next year saw the debut of the Kawasaki Bajaj Caliber, the Spirit, and the Legend, India's first four-stroke scooter. The Caliber sold 100,000 units in its first 12 months. Bajaj was planning to build its third plant at a cost of Rs 4 billion ($111.6 million) to produce two new models, one to be developed in collaboration with Cagiva of Italy.

New Tools in the 1990s

Still, intense competition was beginning to hurt sales at home and abroad during the calendar year 1997. Bajaj's low-tech, low-cost cycles were not faring as well as its rivals' higher-end offerings, particularly in high-powered motorcycles, since poorer consumers were withstanding the worst of the recession. The company invested in its new Pune plant in order to introduce new models more quickly. The company spent Rs 7.5 billion ($185 million) on advanced, computer-controlled machine tools. It would need new models to comply with the more stringent emissions standards slated for 2000. Bajaj began installing Rs 800 catalytic converters to its two-stroke scooter models beginning in 1999.

Although its domestic market share continued to slip, falling to 40.5 percent, Bajaj Auto's profits increased slightly at the end of the 1997-98 fiscal year. In fact, Rahul Bajaj was able to boast, 'My competitors are doing well, but my net profit is still more than the next four biggest companies combined.' Hero Honda was perhaps Bajaj's most serious local threat; in fact, in the fall of 1998, Honda Motor of Japan announced that it was withdrawing from this joint venture.

Bajaj Auto had quadrupled its product design staff to 500. It also acquired technology from its foreign partners, such as Kawasaki (motorcycles), Kubota (diesel engines), and Cagiva (scooters). 'Honda's annual spend on R & D is more than my turnover,' noted Ruhal Bajaj.

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His son, Sangiv Bajaj, was working to improve the company's supply chain management. A marketing executive was lured from TVS Suzuki to help push the new cycles.

Several new designs and a dozen upgrades of existing scooters came out in 1998 and 1999. These, and a surge in consumer confidence, propelled Bajaj to sales records, and it began to regain market share in the fast-growing motorcycle segment. Sales of three-wheelers fell as some states, citing traffic and pollution concerns, limited the number of permits issued for them.

In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million. The Italian firm had exited a relationship with entrepreneur Deepak Singhania and was looking to reenter the Indian market, possibly through acquisition. Piaggio itself had been mostly bought out by a German investment bank, Deutsche Morgan Grenfell (DMG), which was looking to sell some shares after turning the company around. Bajaj attached several conditions to his purchase of a minority share, including a seat on the board and an exclusive Piaggio distributorship in India.

In late 2000, Maruti Udyog emerged as another possible acquisition target. The Indian government was planning to sell its 50 percent stake in the automaker, a joint venture with Suzuki of Japan. Bajaj had been approached by several foreign car manufacturers in the past, including Chrysler (subsequently DaimlerChrysler) in the mid-1990s.

Employment fell from about 23,000 in 1995-96 (the year Bajaj suffered a two-month strike at its Waluj factory) to 17,000 in 1999-2000. The company planned to lay off another 2,000 workers in the short term and another 3,000 in the following three to four years.

Principal Subsidiaries: Bajaj Auto Finance Ltd.; Bajaj Auto Holdings Ltd.; Bajaj Electricals Ltd.; Bajaj Hindustan Ltd.; Maharashtra Scooters Ltd.; Mukand Ltd.

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Principal Competitors: Honda Motor Co., Ltd.; Suzuki Motor Corporation; Piaggio SpA.

BAJAJ GROUP

•The Bajaj group was founded in 1926 by Jamnalal Bajaj. •In 1945, Kamalnayan Bajaj, Jamnalal's son, set up

Bachraj Trading Corporation Ltd. (BTCL), a tradingcompany, to import and sell two- and three-wheelers. This business continued till 1959.

•In 1959, the company secured a license from the Government of India (GoI) to manufacture two- and three-wheelers. •In 1960, BTCL was renamed Bajaj Auto Ltd. (BAL) and

the company went public. The same year, it enteredinto a technical collaboration with Piaggio for themanufacture of scooters.

•In the mid-1940s, BAL started as an importer of two- and three-wheelers.

With its collaboration with Piaggio coming to an end in the early 1970s, BAL started manufacturing scooters under the Bajaj brand. •In the early 1960s, BAL, in collaboration with

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Piaggio, started manufacturingVespa brand scooters at its plant near Pune, Maharashtra.

SEGMENTS IN TWO WHEELER MARKET: LATE 90’s

BAJAJ CHETAK: A BRIEF INTRODUCTION •BAJAJ CHETAK was a popular Indian made motor scooter produced by the Bajaj auto company. •Originally based on Italian Vespa, Chetak was the only choice for millions of Indian families as an affordable way of transport for decades. •TheC heta k, a geared scooter, had reigned over the Indian two-wheeler market in the late 1970s to early 1990s and had come to occupy a near-iconic status. •TheC heta k, BAL's first scooter model under the Bajaj brand, was introduced in 1972. In the 1970s and 1980s, scooters dominated the Indian two-wheeler market. •Most middle-class Indians preferred scooters

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because of their durability, low maintenance costs, and versatility, and the BajajC heta k name became synonymous with scooters.

•At that time, the motorcycles available in India were heavier and not as fuel efficient as scooters. They were also costlier. •The brand which was named after the legendary stallion of the Rajput king Maharana Pratap, was known for the reliability and sturdiness.

The brand thrived during the license raj with virtually no competition. •Bajaj Chetak had a huge brand equity . The brand

had the persona of a " work horse". With reasonableprice and the low maintenance cost made thisproduct a huge hit among the middle class Indians.

DECLINE IN BAJAJ MARKET •In the late 1990s, the Indian two-wheeler market witnessed a shift in consumer preferences. •The popularity of geared scooters began to wane while that of motorcycles soared. •There were various reasons for the shift:

1. India was undergoing a demographic change, with the proportion of younger people in the population growing significantly.

2. The economy was growing, which increased the disposable incomes of the middle class.

3. Many newer models of motorcycles, with improveddesigns and modern technology had becomeavailable in the market.

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While these changes were taking place in themarket, the features of scooters, especially those ofthe BajajCh etak, remained essentially unchanged.

•The brand thrived during the license raj with virtually no competition. •It was during 1990-91 that the brand began the journey to the end. •Promoted along the base line " Hamara Bajaj", this was the Indian Family vehicle - a position now owned by Maruti 800. •In January 2006, BAL announced that it had stopped production of the Chetak. The " Tilting the Chetak to the side for starting " was a common joke. •Scooters were BAL's main products, and when

market preferences shifted to motorcycles, thecompany was faced with declining sales andrevenues.

REASONS FOR DECLINE •The primary reason is that the Brand forgot the customers. •Another case of Marketing Myopia. The company failed to understand the changing perception of the customers towards scooters. •Rather than looking at the customers, the company focused on influencing Government to block the opening up of economy. •Bajaj never did anything with the product. For 40 years Chetak had the same look, same quality and style. •Bajaj never was serious about product development. The R&D spent for a long time was a miniscule 1%.

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The average cycle time for the new product development was 4-5 years compared to 2-3 years of Japanese competitors. •There was nothing wrong with the Promotion. " Hamara Bajaj " and " No one can beat a Bajaj " were famous base lines. •There was nothing wrong with distribution and the pricing was very reasonable. The major problem was in the first P : Product. •Bajaj never seriously looked at customer perception about Chetak. The product had serious problems like starting trouble and riding comfort. It was believed that the dramatic shift happened because players like BAL did not pay sufficient attention to design, R&D, and customer satisfaction. •The decline was directly related to neglect of this

segment over mileage, contemporary technology,and non-stop excitement of launch of newer andnewer models offered on the motorcycles platform.

•The biggest drawback of Bajaj Chetak was its handling during heavy breaking. COMPETITORS •The players like Vespa did not had much of success in this segment. •Kinetic Honda managed to carve a niche with its gearless scooters. •Another segment which was growing was the scooterette segment which was dominated by TVS scooty. •Consequently, by the early 2000s, motorcycle sales surpassed that of scooters and BAL lost its title of India's largest two-wheeler company to Hero Honda. •With the introduction and subsequent popularity of

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Honda Motorcycle and Scooter India (HMSI) scooters, especially theAct iva, a gearless scooter, BAL lost its dominance over the Indian scooter market.

KINETIC ZOOM1. 2 stroke- scooter.2. maximum speed of 73 km/ hr.3. fuel capacity of 7 litres.4. works on electric start mechanism.

HONDA ACTIVA1. 4 stroke- scooter.2. maximum speed of 80 km/ hr.3. fuel capacity of 6 litres.4. works on electric start mechanism.

BAJAJ CHETAK:1. 2 stroke- scooter.2. maximum speed of 50 km/ hr.3. fuel capacity of 6.5 litres.4. works on kick start mechanism.

BAJAJ MARKETING MIX •PRICE

1. Bajaj Chetek's price was affordable. But the newmotor cycles entering the two wheeler segmentoffered better technology & fuel efficiency than BajajChetak at almost same price.

PRODUCT 1. The company should look upon its R&D and improve the overall looks of Bajaj Chetak.

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2. It should make efforts to change the quality &style of the scooter to suit the tastes & preferencesof its customers.

3. The product had serious problems like startingtrouble & riding comfort, which need to beeliminated.

PROMOTION Bajaj Chetak should come out with various schemes & incentives.