Bajaj, a company that is bugged by Chinese copy bikes, is planning to counter attack. Sources close to Bajaj say the 2-wheeler maker will enter the Chinese market with a brand new 125 cc motorcycle, which will also be sold in Nigeria.
- This bike will have a 125 cc engine and will retail at around $500.
- Bajaj is trying to make use of cheap labor in China, but what remains to be seen is whether they will be able to compete with the established local brands, who dominate the 2-Wheeler industry in China.
- Bajaj will introduce the low-cost bike under a different brand name to keep their brand image in tact as they have plans for making several high capacity bikes for other overseas markets.
After success of the Pulsar and Discover, Bajaj's think tank is well equipped to handle pressure situations, and the design team is expected to bring out a low cost design that doesn't look tardy.
Bajaj is already in the business of low-cost cars as they are preparing the much awaited Ultra Low Cost Car (ULC) for a 2011 launch.
It's early times to predict anything else, but the Indian and Chinese markets are dissimilar, and the competition Bajaj will face in China is going to be many times compared to that in India.
IAB Comment- To make life easier, Bajaj should tie-up with any of the locals who will be able to distribute and service their products in China. 100% localization is the only way Bajaj can compete with Chinese brands. Take that from me.