Friday, November 7, 2008

Bajaj Auto to kick-start low-cost, sub-125cc bike priced around Rs 30,000

why is Bajaj ready to peddle low-cost bikes when market leader Hero Honda Motors - which is a well entrenched player in the entry level motorcycle segment - has shied away from this segment till now?

"We just don’t know why Bajaj bikes are not selling!"

Bajaj Auto could be devising a multi-pronged strategy to generate growth in these troubled times. The company, which has seen a significant slowdown in domestic bike offtake over the last several months, may have already developed a low-cost motorcycle even as it works on upgrading the XCD platform for launching a “sports” bike next month.

Though the company has been vehemently denying any such move, industry sources say Bajaj has just begun testing a low-cost product in export markets such as Nigeria. According to these sources, this is a “sub-125 cc” bike and a debate is currently on within the company on whether to price it around Rs 30,000 (lower than the cheapest bike available in the market today) or slightly higher. Sources indicated that the brand name for the new product could be “Steel”, but this could not be confirmed.

Bajaj may be able to price this bike lower than existing, entry level motorcycles by importing many components from low-cost sourcing bases such as China. To read more, please, visit - DNA

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