Bajaj scooter will cease production soon because of falling demand . What do we learn from this ?

22Mar10

When I went to school , we still had  many  teachers ( mainly Maths and Sciences )  from India  . Some of my contemporary went to further their studies in India , as it  was  then the cheapest country to seek an western type education . India of the 1970’s through to 1980’s was  poor  country of many people . Since the 1990’s things have changed .

During the period of the 70’s to 80’s there was not much of anything . Need to buy a car –impossible to most people because it was too expensive and too few anyway . Need to buy a scooter-well you need 1 year lead time ( and for some it was even longer )  and in any case, it was too expensive for most people .

Then come Bajaj Scooter with its  2 stroke engines and 3 gears . It was mostly coloured avocado cream . Every body was scrambling to buy a Bajaj Scooter . Bajaj thought that the demand will go on for ever .

A Bajaj scooter . It was a status symbol to own and drive in one .

This is from Youtube.com

For the next 20+ years , the manufacturer must have sold tens of millions of Bajaj Scooters. But like so many good things, it has come to an end sometime.

Since late 1980’s Indian economy has been improving, middle class Indian rose from 5 million to over 50 million. Middle class Indian has more choice:  Scooter, Motor cycle and Car. Come sometime in March 2010 Bajaj Scooter would not be produced anymore because of falling demand. In the 1970’s it would be impossible to imagine this! 1

I am reminded of Proton. During the hey days, it was Proton all the way. Demand was huge and 9 cars out of 10 on the road was a Proton. Proton Dealers would be forgiven to think the good days will last forever and ever. It did not. Where is Proton now?

Those were the days . Dealers was the King . Not the customers. Service was poor . Customers where blackmailed to follow Proton’s instruction . Cars were expensive to allow Proton to make Billions . The quality of Proton cars were poor . Where is Proton now ?

The moral of the story is, listen to your customer.



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