In keeping with its strategy of exiting the 100cc motorcycles segment, two- wheeler major Bajaj Auto today unveiled its Digital Twin Spark - Swirl induction (DTS-Si) technology that will offer the customer a combination of fuel economy and performance.
The company's research and development team has built a 125cc engine, which is the first engine based on the DTS-Si technology.
A new motorcycle Exceed, to be launched early next month, will have this engine, and will mark Bajaj Auto's entry in the 125cc segment, managing director Rajeev Bajaj said today.
"The new vehicle will offer the fuel efficiency of a 100cc engine with much greater torque and performance," Bajaj said indicating that the new motorcycle will be priced close to Rs 42,000, ex-factory.
Bajaj said the production of motorcycles using the new engine will begin at the company's Waluj (Aurangabad) plant from tomorrow (10 August), and the estimated run for September will be 20,000 units which will be ramped up to 50,000 per month from November.
Admitting that the new product will cannibalise the 100cc Platina to an extent, Bajaj said the Exceed volumes with higher margins will justify the trade-off. "We are not making money in the lower 100cc segment, and will be able to concentrate on the high margin high capacity engines where we have a greater market share," he stressed.
"We are exiting the 100cc products and not the 100cc buyer who will get a much better product in 125cc segment at a marginally higher price," he said.
He declined to answer any queries on the company's small car project or the plans to tie-up with UK-based Triumph for high end motorcycles.
Bajaj informed that the company's relationship with Japanese two-wheeler maker Kawasaki continues to be strong.