Bajaj looks to steer trend with Exceed

Company: expects a profit margin of Rs 3,000 on each bike, which took three years to make.

The much-talked about Bajaj bike Exceed, christened as XCD 125 DTS-Si, was launched here, price at Rs 41,000 (ex-showroom).

The company has spent three years to develop the model with 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 bike will have fuel efficiency more than a 100cc bike, combined with performance of a 150cc bike. The bike is pegged to bridge the gap between the entry-level segment (100cc) and the high-end segment (150cc+).

“We will now focus on bigger, faster and technologically advanced bikes,” added Rajiv Bajaj. Since early this year, Bajaj Auto said it was working on the non-100cc segment and ruled out new products in the entry-level segment.

The company will initially produce 20,000 units and will hike them to 50,000 units a month from next month.

“We have strong vendor backup to support target of 50,000 units a month. This will make the model the third most produced bike in India,” said Rajiv Bajaj, who was addressing a gathering of his vendors.

The company’s sales declined of about 7 per cent in August and the blame was put on the 100cc segment whose sales in the country went down from 73 per cent a year ago to 61 per cent currently. During this time, total share of 125cc segment increased by 10 per cent and the 150cc segment by 20 per cent.

The company will launch a few more products based on the Exceed platform and will continue focus on the ungeared scooter segment where it may launch a high-powered sporty scooterette, Blade, by 2008.

Rajiv Rajiv also said the company will compete with Yamaha, Honda, Kawasaki and Suzuki in East Asia and other places.The company has phased out its Discover 125 and has also stopped the production of the Discover 110 last month.

The company will continue to produce Platina’s as long as there is a demand for it.

The company is in talks with Kawasaki for technology alliance. The company is on the verge of announcing a joint mega development venture.

On patent row with TVS Motors, Bajaj said: “Its not just about the two spark plug and two valve story….it also talks about what has been the intention of TVS behind developing a 125cc, fuel-efficient bike which seem to have the same engine configuration of ours. We will be sure of the infringement only when the bike gets launched.”