Rajiv Bajaj reveals why brands fail: 'People buy different, not better'

Rajiv Bajaj, Managing Director of Bajaj Auto, at the CNBC-TV18 Global Leadership Summit on Thursday, explained why many brands fail, stressing that consumers choose distinctiveness over quality alone. He cited the Pulsar motorcycle as a key example of how Bajaj Auto carved out a market by standing apart from competitors like Hero Honda.


"Brands fail primarily because most products and services are launched to serve an existing market, not create one," he said, adding that businesses should aim to offer consumers something that not only meets expectations but also stands out as unique and difficult for competitors to replicate.

Reflecting on Bajaj Auto’s journey, he recalled how the company once lagged behind Hero Honda in the domestic market. Instead of directly competing in the 100cc motorcycle segment where Hero Honda dominated, Bajaj Auto chose a different path to distinguish itself.



Bajaj cited the launch of the Pulsar, a sports motorcycle, as a pivotal moment, noting, “At Bajaj Auto, we learnt that people don’t buy better; they buy different.” By focusing on a unique product, Bajaj Auto outperformed Hero Honda in international markets, though Hero maintained its dominance domestically.

Discussing the competitive landscape in India, Bajaj directed a jibe at new electric vehicle (EV) entrants, referring to them as “upstarts” lacking depth in experience. “Fark bohot hai tumhare aur humare taaleem mein; aapne ustaadon se seekha hai aur humne haalaton se,” he remarked, suggesting that his experience, shaped by real-world challenges, sets Bajaj Auto apart from these rivals.

Quoting Bollywood star Shah Rukh Khan’s line, “Jo kuch nahi karte hai woh kamaal karte hai,” Bajaj reiterated his vision for Bajaj Auto to remain steady and impactful without unnecessary fanfare. Bajaj Auto continues to invest in EVs, particularly in e-scooters and three-wheelers, with plans to launch a new CNG motorcycle, Bajaj confirmed.