Bajaj expanding business

The Jakarta Post, Jakarta

Motorcycle maker PT Bajaj Auto Indonesia is trying to increase its sales of sports motorcycles in Indonesia by launching new products this year, with an intention of establishing a new production plant next year.

Sales and marketing director Dharmesh K. Banerjee told The Jakarta Post at the launching of a new product, Pulsar 200 cc DTS-i, on Monday that the company would launch two more new products in the second quarter.

To support the marketing of the new products, he said, the company, whose headquarters is located in India, would spend US$6 million.

Bajaj also planned to build its first manufacturing plant in Indonesia.

"Maybe in 2009," said Barnejee, adding that the company was currently operating an assembly plant in Cikarang, Bekasi, West Java.

Banerjee further said that this year the company would build 60 new showrooms nationwide, adding its current 40 showrooms in, among others, Greater Jakarta, Surabaya of East Java, Bandung of West Java, Semarang of Central Java, Yogyakarta, Medan of North Sumatra, Jambi, Pekanbaru of Riau, Palembang of South Sumatra, Padang of West Sumatra and Lampung.

Since the launch of its first product in Indonesia in November, 2006, Bajaj had sold 10,000 motorcycles, at around Rp 15.5 million to Rp 16.5 million each, as of the end of 2007.

With the launch of the three new products, Banerjee said, Bajaj expected to more than double its sales this year.

President director K.S. Grihapathy said that Bajaj, therefore, would develop brand awareness among potential consumers.

"In few years to come, we'll be focusing on brand building, service network and distribution to tap Indonesia's sport motorcycle market," he said.

According to the Indonesian Motorcycle Industry Association (AISI), last year's national sales of sports motorcycles rose by 18.3 percent to 379,039 units from 320,359 in the previous year.

Grihapathy estimated that based on the size of the national market, the country could absorb the monthly sales of some 5,000 motorcycles with a price tag of about Rp 20 million.

"Our new product, Pulsar 200, is priced at Rp 20 million. Hopefully, we will get a 10 percent share of that market of 5,000 units," he added.(nkn)