While the auto industry is in the midst of hectic preparations for the Auto Expo, Bajaj Auto managing director Rajiv Bajaj on Monday struck a contrarian note saying it is too expensive to participate in the biennial event and creating expensive concepts entails wasteful expenditure.
"To show the same thing,'V' model, over there (at Auto Expo) it is Rs 5 crore; we have managed it here for Rs 5 lakh. There are some big car companies who have big money; they can do it."
The company, which unveiled its new bike 'V' here on Monday, has decided to skip this year's Auto Expo on the ground that it was not worth the expenditure and time involved.Bajaj told the media, "To participate in such an event, it takes around Rs 10-Rs 15 crore to make those concepts and the poor R&D department is spending half their time creating these concepts. There are some big car companies who have big money; they can do it. We are a small company. So, to spend such amount is not affordable for us."
Bajaj was in the Capital to unveil 'V', which contains metal sourced from the country's first aircraft carrier INS Vikrant. The company's rivals Hero MotoCorp, TVS, Honda Motorcycle and Scooter India, Yamaha are all participating in the Delhi Auto Expo, which will be held in Greater Noida from February 5-9 at Greater Noida. The mega event will witness 80 launches from leading carmakers.
Bajaj said that with the company being an established brand in India, the Expo does not serve the purpose of creating brand awareness as much as it would have been helpful to a new company. "If we are a known brand in India. if it is wasteful to create expensive concepts, if it is too expensive to participate to show a new product and an existing product can be shown in any dealership, then I don't understand what is the purpose of participating." "I think the shelf life of this (concepts shown at the event) is not even one week and no one remembers it for long," the young business leader added.