Wednesday, December 29, 2010

Bajaj alleges TVS for smear campaign

According to a Bajaj Auto release, two people employed with TVS Motors outlets in central and eastern India have been caught red handed distributing leaflets allegedly containing misleading and wrong information on Bajaj products.

Bajaj Auto alleges that due to better product initiatives taken by it, the competition have been put under 'severe pressure', driving them to completely unethical and undesirable actions.

Bajaj Auto dealers nabbed Santosh Kumar Rath and Sunil Kumar Sahu distributing leaflets stating Bajaj Auto is "phasing out the Bajaj Platina 100cc motorcycles and that the ongoing discount on the bike is a part of stock clearance sale". Rath is an employee of Krishna TVS of Puri, Orissa, a Bajaj press statement said today.

Vimal Sumbly, national sales manager, Bajaj Auto, said: "The Platina has met with a tremendous response from consumers. We have no plan of discontinuing this hugely successful product. We are monitoring these types of unethical practices by competitors very closely. We see these activities as desperate measures by them to arrest the overwhelming success of our brands."

"We will not tolerate such unethical behavior on the part of the competition and we are planning to take police action at every location to bring this to a stop", he further added.

A TVS Motors spokesperson, said "TVS is unaware of any such action. The company will not indulge in any such activities and shall investigate the matter".

Bajaj also holds the 'competition' responsible for spreading incorrect news on the company's XCD125 motorcycle last week, that the bikes were being recalled for rectification.

An FIR has been filed against Krishna TVS by the Puri dealer of Bajaj Auto. Bajaj claims that it has received information that a similar vilification campaign is being carried out in Surat, Gujarat.

Meanwhile, Bajaj claims its recently launched product has sold 65,000 units in the first fifty days of its launch, making it the segment's top selling bike. In September the company sold 18,000+ units of the motorcycle.

Following the positive response, the company plans to hike monthly production to 75,000 units in November months ahead of schedule.

Amit Nandi, general manager (marketing), Bajaj Auto, said: "Fifty per cent of XCD 125 volumes are coming from competition, a majority of them being 100cc users. XCD 125 is a compelling package that 100cc customers are finding very difficult to resist."

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