Bajaj Auto is strategically launching new Pulsar motorcycles in the 125cc and 150-250cc segments in Q2 FY27, aiming to capture the anticipated surge in demand during India's crucial festival season and reinforce its dominance in the rapidly growing premium motorcycle market.
Key Points
- Bajaj Auto plans to launch new Pulsar models in the 125cc and 150-250cc segments in Q2 FY27 to leverage festival season demand.
- Refreshed Pulsar N and NS series models, introduced between October 2025 and March 2026, now contribute over 50 per cent of Bajaj's 150cc-plus segment sales.
- The 150-200cc segment, a core Pulsar market, grew 37.5 per cent year-on-year in FY26, with Bajaj's volumes in this band surging 61.5 per cent.
- Consumers are increasingly favouring more powerful, feature-rich premium bikes, particularly in the 150cc-plus segments.
- Bajaj Auto recorded its highest-ever dollar export revenues of $2.2 billion in FY26, accounting for approximately 55 per cent of all Indian motorcycle exports.
Bajaj Auto is doubling down on its most-recognisable motorcycle brand — the Pulsar.
At the company’s interaction over the earnings for the fourth quarter of financial year 2025-26 (Q4FY26), executive director Rakesh Sharma was characteristically guarded on specifics, but he said: “We will have new motorcycles in the 125 cc and in the 150-250 cc segment — we would like to put them in as early as possible, particularly in quarter two, so that we are in time to harness the surge, which usually comes in the season time.”
These would be mostly under the Pulsar umbrella.
Pulsar's Growing Market Presence
Pulsar brand has grown in volume and relevance in recent months.
Between October 2025 and March 2026, Bajaj introduced nearly 8-10 variants and upgrades across the Pulsar N and NS series alone.
Sharma noted that these refreshed models now account for over 50 per cent of Bajaj’s sales in the 150 cc-plus segment — a sign that the new product cadence is translating directly into consumer acceptance.
The launch calendar for the rest of FY27 will be similarly active.
Data by the Society of Indian Automobile Manufacturers (Siam) for FY26 reveals that the 150-200 cc segment — the heart of Pulsar territory — was the fastest-growing major segment in the Indian motorcycle market, expanding 37.5 per cent year-on-year (Y-o-Y) to 1.51 million units.
Bajaj’s own volumes in this band surged 61.5 per cent, significantly outpacing the segment average.
The 200-250 cc segment — where the Pulsar 220, Pulsar 250, and Dominar play — grew even faster at 66.9 per cent, though from a smaller base of 223,066 units.
Bajaj is the leader in the 200-250 cc segment, the second-largest player in the 150-200 cc segment behind TVS, and the market is running towards it.
Industry Trends and Consumer Shift
Sharma’s read of the broader industry is nuanced.
He described a motorcycle market that roared through FY26 at 20 per cent-plus growth rates in its latter half, only to hit an air pocket in April 2026.
A confluence of geopolitical disruption — stemming from the West Asia crisis — led to LPG (liquefied petroleum gas) shortages, supply chain stress, and softening consumer sentiment.
He now expects the industry to moderate to 7-9 per cent growth in near term, a sharp stepdown from recent momentum.
Sharma was careful to distinguish between the two halves of this market.
“The growth is continuing largely from the top half and in particular from the 150 cc-plus segment, which is expected to grow at twice the rate,” he said.
The Siam numbers validate this.
The sub-110 cc segment — Hero MotoCorp’s stronghold with over 81 per cent market share — grew just 4.5 per cent in FY26.
The 110-125 cc band was virtually flat at 0.4 per cent growth.
The 125-150 cc segment contracted sharply by 27.3 per cent, as buyers skipped that rung of the ladder entirely.
The message from consumers is unambiguous: they are leaning towards more powerful, feature-rich premium bikes, and they are willing to pay for them.
Challenges and Export Success
Ravi Bhatia, president of automotive insights and analytics firm JATO Dynamics, said: “The 125-150 cc segment is getting squeezed, but not entirely because consumers are moving upwards.
"A large part of the pressure is actually coming from consumers shifting toward high-value 125-150 cc products, while premiumisation is happening more selectively above 200 cc.”
Bhatia felt that makes the transition more complex for OEMs (original equipment manufacturers) like Bajaj Auto.
“The Pulsar range in the 150-200 cc category saw a meaningful decline, and Bajaj’s domestic market share moderated from 11.54 per cent in 2024 to 10.78 per cent in the first nine months of 2025.
"So, the market is clearly moving toward higher value, but the migration is uneven — it is still a transition story, not yet a clean premiumisation story,” he added.
Moreover, there is a cost headwind to navigate. Sharma acknowledged that raw material prices — particularly the metal complex — are rising 3-5 per cent, and the company raised prices from April 1, 2026.
He noted that approximately 30-40 per cent of the goods and services tax (GST) rate cut benefit that had uncorked demand last year, has effectively been reversed through these price increases.
The saving grace for Bajaj is a favourable dollar realisation rate, now at Rs 95 to the dollar versus Rs 90 just a month earlier, which helps cushion margin pressure, given that exports now constitute a substantial share of its business.
On exports, Sharma was bullish.
Bajaj crossed 600,000 units per quarter for the second consecutive time, recording its highest ever dollar export revenues of $2.2 billion in FY26.
The Siam data confirms that Bajaj accounted for approximately 55 per cent of all Indian motorcycle exports in FY26 — a commanding position built on the back of its Latin America push, with the Pulsar brand selling premium in markets across the region.
