Bajaj Auto Announces Portfolio Reset with Plans for Two New Brands and Three Products in FY27

Bajaj Auto has announced plans to introduce two new brands and three additional products during FY27. This move follows 12 launches completed so far as part of a wider portfolio overhaul aimed at recovering domestic market share while managing a sharp increase in input costs.

Rakesh Sharma, Joint Managing Director at Bajaj Auto, stated that three more products and two new brands will follow the initial launches, though specific names, categories, and launch schedules were not disclosed.

A core element of this portfolio reset is a ground-up overhaul of the Pulsar 125 and 150 motorcycles. These ageing volume models generated over ₹11,000 crore in domestic revenue during FY26, accounting for nearly 19% of the company's ₹58,732-crore standalone revenue. Sharma noted that the lack of changes to these products over time had weighed on the company's performance.

Registration data indicates competitive pressure in the domestic market. While Bajaj’s two-wheeler registrations grew about 13% to 11.8 lakh in the first half of calendar year 2026, the overall market expanded nearly 19% to 1.11 crore, according to calculations based on FADA’s VAHAN-derived data. Consequently, the company's retail market share slipped to approximately 10.6% from 11.2%. This downward trend continued into the first quarter of FY27, with retail share trimming further to 10.4%, while its motorcycle-only market share fell to 15.6% in FY26 from 18.2% two years prior.

Performance across different segments has varied. Higher-performance NS motorcycles grew at roughly 1.5 times the market rate, and the newer N-series expanded at twice the market rate. However, the older Classic range required intervention to counter rising competition from rivals such as TVS Motor’s Raider 125, Hero MotoCorp’s Xtreme 125R, and Honda’s Shine.

The updated Pulsar models feature new frames, engines, gearboxes, and a shift from twin rear shock absorbers to monoshocks. Depending on the variant, updates include riding modes, low-speed handling features, and five-inch TFT displays with navigation. Power output adjustments are modest, with the Pulsar 125 rising to 12.1 PS and the Pulsar 150 retaining 14 PS.

The Pulsar 125 will start at ₹92,900, while the Pulsar 150 begins at ₹1,15,233. This pricing strategy comes as Bajaj navigates a commodity-cost increase equivalent to about 4.5% of revenue in Q1 FY27. Price hikes implemented in April and June recovered nearly half of this impact, with currency gains, volumes, and operational efficiencies absorbing the remainder, allowing EBITDA margin to rise to 20.9% from 19.8% a year earlier.

With the Classic Pulsars rebuilt and sports-motorcycle segments posting growth, Bajaj Auto's upcoming product launches and new brands will test the company's ability to drive faster domestic growth and reclaim lost market share.

"Established market leaders must continuously reinvent core product lines to defend their turf against aggressive challengers. Bajaj Auto's targeted overhaul of its high-volume Pulsar models demonstrates a pragmatic approach to addressing ageing portfolios while protecting margins amid rising commodity costs. The success of their upcoming brand launches will depend heavily on consumer reception and execution speed in a competitive two-wheeler market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes