Boxer 125: Bajaj’s sub Rs 25,000 bike
According to some reports in the media, Bajaj has started manufacturing its low cost 125cc bike in China. This bike, which will be sold in China, Nigeria and some of Bajaj's other exports markets, will be branded 'Boxer' instead of 'Bajaj.' The 'Boxer' branding will also be used in India, when the bike is launched here by end-2009 or early-2010.
Bajaj's low cost Boxer 125 is expected be priced at around Rs 22-24,000. Since the company does not want to associate itself with such low-priced budget bikes, it will sell these bikes under the Boxer brand rather than use the Bajaj name. To begin with, Bajaj will manufacture around 20,000 units of the Boxer 125 per annum at its plant in China. About 75% of the total production will be sold in Nigeria.
Currently, Bajaj's cheapest motorcycle is the Platina 100, which sells for around Rs 35,000, ex-showroom. Bajaj's chief competitor, Hero Honda also sells a bike in this segment - its CD Dawn is priced at Rs 33,500, ex-showroom.
Both Bajaj and Hero Honda believe they can significantly boost their motorcycle sales by launching bikes that cost around the Rs 20,000 mark. The primary market for these ultra low cost bikes would be rural India, where these bikes could replace bicycles and mopeds etc. While motorcycle buyers in bigger Indian cities gravitate towards style and performance, purchase price and fuel-efficiency are still the two most important factors for motorcycle buyers in smaller towns.
[Via: indiaautomotive]
KMCL to sub-licence ‘Kinetic’ brand to Mahindra
The Pune-based Kinetic Motor Company Ltd. (KMCL) has announced it will extend its brand licence agreement with Kinetic Engineering Ltd. (KEL) for the use of 'Kinetic' brand, and will also sub-licence the brand to Mahindra Two Wheelers Pvt. Ltd. The pact would be extended for another 25 years with effect from 1st April 2009, and the sub-licensing would also be for 25-year-period, Kinetic Motor said in a filing to the Bombay Stock Exchange.
'For renewal of the said Brand Licence agreement, KMCL has agreed for a consideration of Rs 7.75 crore to be paid to KEL,' the filing added. While Rs 2.75 crore has to be paid on or before 31st March 2010, the rest would by way of issuing five lakh redeemable cumulative preference shares of Rs 100 each, fully paid up, in the share capital of the company.
Further, Kinetic Motor would invest up to Rs 29.5 crore in equity shares of Mahindra Two Wheelers Pvt. Ltd., subject to shareholders approval and other necessary approvals. These decisions were taken at Kinetic Motor's board meeting yesterday.
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