Global Automobiles, a part of the Rs 620 crore Xenitis Group, today launched a 100cc mobike for Rs 19,990, with equated monthly instalments (EMIs) fixed at Rs 490.
The competition - TVS, Bajaj and Hero Honda's entry-level - 100cc models, are priced above Rs 30,000. Santanu Ghosh, chairman of the company, said the intention was to rewrite the price equation in the country's motorbike industry.
Most of the motorbikes sold in India were in the 100cc to 125 cc category, with the 125cc ones priced over Rs 45,000.
Xenitis motorbikes are being built at its plant in Hooghly, 50 km away from Kolkata.
According to Ghosh, “All it takes is backward integration and focus on volume manufacturing. Accordingly we designed and sourced components for the bike.”
The Xenitis bike, sold under the Global brandname, and with self-starter, halogen headlamp and integrated instrument panel, is priced at par with the global selling price of such motorcycles, said Ghosh, implying that Indian companies are presently selling motorbikes at artificially inflated prices.
“When the plant starts making upto 1 million bikes annually, I expect the competition to lower prices to comparable levels”, said Ghosh.