Bajaj to make cheap bikes in China!

According to reports in the media, Bajaj Auto is all set to turn the tables on Chinese motorcycle manufacturers by taking them on at their own game – making and selling ultra-low-cost two-wheelers for developing markets.

Bajaj Auto is said to have arrangements in place with certain companies in China, which would, on a contract basis, manufacture 125cc bikes for Bajaj. These bikes would be sold at the equivalent of around Rs 20,000-25,000 in some of Bajaj’s export markets, including China and Africa.

However, Bajaj will not sell these low-cost two-wheelers under its own brand. The company, which wants a high-quality, high-tech image for its brand, will develop an all-new brand for its low-cost lineup of Chinese-built bikes.

In the 100-125cc bikes segment in India, Bajaj has fallen behind chief rival Hero Honda. Under the new strategy, the company’s new range of Chinese-built bikes might ultimately also be introduced in India – perhaps by 2010 – to take on Hero Honda in the 100-125cc segment.

In the meanwhile, the Chinese are said to be selling more than 12 million low-cost bikes per annum, worldwide. And Bajaj Auto wants a significant chunk of that market with its own Chinese-built motorcycles – an objective which, if achieved, will add tremendously to the company’s bottomline.