Bajaj launches XCD 125 @ Rs 41,000

Amid much fanfare, the much awaited bike from Bajaj, the Exceed, christened as XCD 125 DTS-Si, was launched here today at a price of Rs 41,000 (ex-showroom).

The bike is pegged to bridge the gap between the entry level segment (100cc) and the high-end segment (150cc). Since early this year, Bajaj said that it was working on the non-100cc segment and that there would be no new products in the entry level segment.

As said earlier, the bike will deliver the fuel efficiency of a 100cc bike combined with the performance of a 150cc one. It has taken about three years for the company to develop the model with some design expertise from its technical partner Kawasaki.

Rajiv Bajaj, managing director, Bajaj Auto, said, "We have priced the bike according to the market trend, and expect to derive a profit margin of about Rs 3,000 on each bike sold."

The company will produce 20,000 units this month, which would be hiked to about 50,000 units a month by October.

"We have strong vendor backup which can support our production target of 50,000 units a month. This will make the model the third most produced bike in India," said Rajiv, who was addressing a large gathering of the company's vendors.

Even as the company's sales witnessed a decline of about 7% in August, it was squarely blamed on the 100cc segment whose share to total bike sales in the country has gone down from 73% a year ago to 61% this year. At the same time, the total 125cc segment share has gone up 10% and the 150cc segment 20%.

In keeping with its trend, the company will launch a few more products based on the Exceed platform without taking out the focus on the ungeared scooter segment, where the company plans to launch high powered, sporty scooterette Blade by 2008.

The company has phased out its Discover 125 and also stopped the production of Discover 110 last month. "We will now focus on bigger, faster and technologically advanced bikes," added Rajiv. However, the company will continue to produce the Platina.

The company is also in talks with Kawasaki for technology sharing purpose. Here, the company is on the verge of making an announcement about their joint mega development venture.

As regards the on-going battle with TVS Motors, Rajiv said that the company is ready to defend its right in court. "We will be sure of the infringement only when the TVS bike gets launched," said Rajiv.