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Ujvin Nevatia

25th Jun · SEBI-Registered Analyst

Bajaj Auto Targets Premium Motorcycle Growth With Stronger 125cc+ Portfolio

$BAJAJ-AUTO plans to strengthen its presence in the strategically important 125cc-and-above motorcycle segment, as it looks to capitalize on growing consumer preference for premium motorcycles. The company expects this segment to drive future domestic growth, supported by rising incomes, premiumization, and increasing demand for feature-rich motorcycles. Bajaj intends to expand its portfolio through new product launches and upgrades across key brands such as Pulsar, Dominar, and its partnership with Triumph. The company believes the 125cc+ category offers better growth potential and higher profitability than entry-level motorcycles. While maintaining its presence in the commuter segment, Bajaj is focusing on strengthening its market share in premium motorcycles, where customer demand has remained relatively resilient despite broader industry fluctuations. Industry & Economic Impact: The strategy reflects a broader shift in India's two-wheeler market toward premium motorcycles, as consumers increasingly prioritize performance, technology, and safety features over basic commuting needs. Manufacturers are investing heavily in higher-displacement models to improve margins and differentiate themselves in an increasingly competitive market. From an economic perspective, strong demand for premium motorcycles signals improving discretionary spending and rising purchasing power among consumers. Growth in the 125cc+ segment also benefits component manufacturers, dealerships, and financing companies while encouraging further investment in product development and manufacturing. Bajaj Auto's renewed focus on this category reinforces the long-term growth outlook for India's automotive sector as premiumization continues to reshape consumer demand. Source: NDTV Profit No Recommendations

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