Saturday, January 26, 2008

Bajaj’s new commuter bike the XCD-(eXceed)


Bajaj has been trying to grab the No 1 slot from Hero Honda but absence of any pulsar like motorcycle in the commuter segment hinders the company for a long time. Infact Bajaj itself on the record said that it wants to exit the 100cc segment. It cited the low margin in 100cc forced it consider exiting the segment(in 125cc and above segment the margins are 15-20 per cent). Bajaj enjoys a market share of 47 per cent in the growing and profitable 125 cc and 150 cc segments against a smaller share of 24 per cent in the declining but larger 100 cc segment(The 100 cc segment has shrunk to 61% of the overall motorcycle market in July, from 73% a year ago. T). Bajaj knows that it cannot ignore 100cc customer if it wants to topple Hero Honda from the first position. Finally Bajaj has find a solution to meet both the conditions (atleast according to Bajaj). Bajaj has unveiled a new engine platform on August 10th, Bajaj bets the new engine (DTS-Si)is far superior to the widely used 4-stroke, 100cc engines. Bajaj will roll out a new 125 cc bike called ‘eXceed’ with this new engine in september. It will price the new bike ‘eXceed’ around Rs42000. With this aggresive price tag and new engine Bajaj is aiming to wean customers from the lower-margin 100 cc bikes, which is an extremely price-sensitive and crowded market dominated by market leader Hero Honda Motors Ltd. Bajaj will target the 100cc customer with the words eXceed - a bike with 100 cc mileage and 125 cc performance.

Bajaj claims the DTS-Si(Digital Twin Spark-Swirl induction) engine is returning mileage/fuel efficiency of 109 kilometres per litre under the ideal test conditions.Let’s see about Bajaj’s new DTS-SI.

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