Bajaj Auto is Developing All New 100cc Entry Level Motorcycle

India’s second largest two wheeler manufacturer Bajaj auto planning a new 100cc bike which could cost less than 40,000 Rs. Bajaj Auto which has seen great success of its 100cc bike discover wants to strengthen its position in 100cc segment by this new offering.

The news came when Bajaj auto informed its auto parts suppliers that they are developing a 100cc bike. Two of the auto parts suppliers of Bajaj auto who declined to be named to the Dow Jones wired recently said that the new motorcycle is being developed as part of Bajaj Auto’s plan to expand its offerings in the entry-level segment.

Bajaj Auto currently sells 10 motorcycle models, including two with 100cc engines–the Discover 100 and Platina. It also sells a 150cc motorcycle under the Discover brand and a Platina 125cc motorcycle.

Currently Hero Honda has lion’s share in 100cc segment with its leading brand Splendour and Passion. Hero Honda still commands 3/4th of the domestic 100cc market. Bajaj Auto had left 100cc segment in the year 2007 which made Hero Honda’s market share to historical high of 85% in domestic 100 cc segment. Bajaj Auto reentered 100cc segment with Discover 100 cc in the last year July and since then it has sold 1 million units of Discover 100cc till the date. Bajaj Auto does not want to stop here, it wants give tough competition not only Hero Honda but emerging rival Honda Motors Scooters India ltd. also.

Bajaj Auto Managing Director Rajiv Bajaj confirmed that the company is working on a new entry-level motorcycle, but declined to disclose its price or engine capacity.He said the company may introduce the new motorcycle next year. “We have only begun an evaluation, hopefully (the vehicle can be launched in) 2011,” he said.

– Mahavir Kothari