Bajaj Auto has drawn up a comprehensive plan to storm the globe with its motorcycles, using China as a sourcing and manufacturing base. According to sources, for the last one year, Bajaj has been quietly working with component suppliers in China to develop a 125cc motorcycle, which costs between $350 and $500, or no more than Rs 25,000. (Currently, the least expensive bike in India comes for around Rs 32,000).
Now that the product is ready, Bajaj is believed to have made contract manufacturing arrangements with firms in China and is readying to sell this low-cost bike in China, Nigeria and some of its other export markets. In a major departure from precedents, the company has decided to create a new brand name for this product, dissociating it from the ‘Bajaj’ brand name altogether. Though Bajaj Auto has not confirmed this development, sources pointed out that the ‘Bajaj’ brand name has been associated with technological superiority and the company perhaps wants to keep a product which uses Chinese components (believed by some to be of inferior quality) out of the Bajaj brand umbrella.