Bajaj Auto on Thursday announced a breakthrough with the launch of a new engine for its new two-wheeler range which the company claims gives a mileage of 109 km per litre under ideal test conditions.
The company will launch a new model `Exceed', powered by the new engine, in September, Bajaj Auto Managing Director Rajeev Bajaj told reporters on Thursday.
`Exceed' is expected to be priced at Rs 40,000 ex-showroom (Pune) but the actual pricing will be decided later, Bajaj said.
The new engine called Digital Twin Spark–Swirl induction (DTS-Si) surpasses the mileage offered by all current 100 cc motorcycles. The company has applied for a patent for this engine, Bajaj said.
The breakthrough offers a huge opportunity to upgrade the 100 cc customers with an engine which offers the best of both worlds–100 cc mileage and 125 cc performance, top officials of the company said.
The DTS-Si engine is far superior to the conventional 4-stroke engines which dominate the 100 cc segment at present, the said.
General Manager, Marketing, Amit Nandi said brand Bajaj enjoys a market share of 47 per cent in the growing and profitable 125 cc and 150 cc segments against a smaller share of 24 per cent in the declining but larger 100 cc segment.
Bajaj will offer customers a value proposition much superior to the currently over-priced and under performing 100 cc products with the launch of `Exceed' next month, he said. 100 cc customers will upgrade to this 125 cc bike that gives superior mileage and power, he said.
Bajaj's TVC
Bajaj said the new engine developed by the company will make 100 cc engines irrelevant. "We ourselves make the most powerful 100 cc at present and the new engine has surpassed the performance of the existing 100 cc engine. We are going to change the rules of the game," he said.
According to Bajaj, `Exceed' will bring in volume and market share for the company as also the high earnings margin of about 15 per cent.
He said the company will be effectively exiting the 100 cc segment now. "There is no money there. We sell Platina model at Rs 33,000 which does not make any money for the company. The cost structure for 125 cc `Exceed' will be the same, yet we will get Rs 4,000 more per product," he said.
The company will make 20,000 `Exceed' motorcycles in September at the Aurangabad plant which will be ramped up to 50,000 units in the subsequent months with plans to roll out part of the production from the new Pantanagar plant.
Referring to the current lull in the motorcycle market, Bajaj said volumes have fallen not only because the interest rates were high but due to absence of any good or exciting product in the market.
Incidentally, there was a de-growth shown by the industry during April-July to the extent of 11 per cent of which 100 cc segment witnessed de-growth of 21 per cent, whereas 125 cc and 150 cc segments witnessed 16 per cent positive growth.
Bajaj refused to take questions on the tie up with Renault or taking over any European brands such as Ducati.
No comments:
Post a Comment