Bajaj Auto, India’s No.2 motorcycle maker, which is jointly developing power bikes with Austria’s KTM, plans to launch a model in the next financial year. Both companies have been involved in the development of a variety of motorcycles over the past 24 months, starting from 125cc.

In April, Bajaj Auto said it had invested 20 million euros to raise shareholding in KTM to 35.7 percent from 31.9 percent.

“The product…will first be launched in Europe and then in India, sometime during the next financial year,” S. Sridhar, chief executive officer of Bajaj Auto’s two-wheeler unit told.

The high-performance range of street bikes to be launched from the Bajaj-KTM collaboration are expected to carry a price tag of more than Rs 1 lakh each. The bike, to be assembled at the company’s plant in Pune, will be nearly double the price of an average 125cc bike in India which are about 43,000 to 46,000.

Rajiv Bajaj, managing director, Bajaj Auto, said, “Whatever product will be out in the market will be at a very significant premium as against brands like the Pulsar. Else, what is the use of bringing such a product?”

Although most 125cc motorcycles currently on sale in India are focused on delivering better mileage with decent power, the Bajaj-KTM bikes are positioned as sporty bikes for better performance

The most expensive production bike made in the country is the Royal Enfield Classic 500, at Rs 147,000 in Mumbai, followed by the Classic 350 and Yamaha R15.

Sources: Reuters,
Business.rediff.com
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