For the price consciuos:
Bajaj has been trying to grab the No 1 slot from Hero Honda but absence of any pulsar like motorcycle in the commuter segment hinders the company for a long time. Infact Bajaj itself on the record said that it wants to exit the 100cc segment. It cited the low margin in 100cc forced it consider exiting the segment(in 125cc and above segment the margins are 15-20 per cent). Bajaj enjoys a market share of 47 per cent in the growing and profitable 125 cc and 150 cc segments against a smaller share of 24 per cent in the declining but larger 100 cc segment(The 100 cc segment has shrunk to 61% of the overall motorcycle market in July, from 73% a year ago. T). Bajaj knows that it cannot ignore 100cc customer if it wants to topple Hero Honda from the first position. Finally Bajaj has find a solution to meet both the conditions (atleast according to Bajaj). Bajaj has unveiled a new engine platform on August 10th, Bajaj bets the new engine (DTS-Si)is far superior to the widely used 4-stroke, 100cc engines. Bajaj will roll out a new 125 cc bike called ‘eXceed’ with this new engine in september. It will price the new bike ‘eXceed’ around Rs42000. With this aggresive price tag and new engine Bajaj is aiming to wean customers from the lower-margin 100 cc bikes, which is an extremely price-sensitive and crowded market dominated by market leader Hero Honda Motors Ltd. Bajaj will target the 100cc customer with the words eXceed – a bike with 100 cc mileage and 125 cc performance.
Bajaj claims the DTS-Si(Digital Twin Spark-Swirl induction) engine is returning mileage/fuel efficiency of 109 kilometres per litre under the ideal test conditions.Let’s see about Bajaj’s new DTS-SI.
Bajaj’s new DTS-SI:
Bajaj’s much popular Digital Twin Spark – ignition(DTS- i) is the mother technology for the latest Digital Twin Spark – Swirl induction or DTS-Si technology. At light loads on DTS-i engine Bajaj finds an opprtunity to improve the combustion even further. When burning lean Air-Fuel mixtures through the two spark plugs, the combustion conditions could be further improved by generating high turbulence in the combustion chamber. The DTSSi technology gives better fuel efficiency by introducing swirl induction to the DTSi engine to create turbulence in order to achieve efficient combustion. The technology has been in existence for a few decades, but is used on larger capacity diesel engines. Bajaj has applied for a patent for this new engine. Bajaj’s ‘eXceed’ would be priced close to Rs 42,000 (ex-factory).
Bajaj’s strategy:
Though Bajaj palns to position the new exceed placed between platina and 112cc Discover (currently bajaj sells the Platina for Rs33000 and Discover for Rs45000) , chances are heavy that exceed will eat into the sales of platina. Bajaj itself acknoweldges, it said “We expect cannibalisation of about 25,000-30,000 (of the expected 50,000) units. We are not so sensitive to the loss of Platina (Bajaj’s existing premium 100 cc bike) in favour of Exceed since Exceed would bring us better margins”. Bajaj expects to make about Rs 4,000 in additional operating profit on each Platina customer shifting to Exceed.
Bajaj plans to make 5000 units in August, 20,000 units in September at its Aurangabad plant in western Maharashtra state, which would be ramped up to 50,000 units. Production would be further raised when the company starts making the new bike at its plant in northern state of Uttarakhand some time in December or January. Bajaj indicated that the DTS-Si platform was flexible and could be expanded both to smaller and larger motorcycles as well adding that the bike would be offered for export in the next fiscal.
Triumph acquistion and Renault tie-up:
Bajaj declined to answer any queries on the company’s small car project or the plans to tie-up with UK-based Triumph for high end motorcycles. Bajaj informed that the company’s relationship with Japanese two-wheeler maker Kawasaki continues to be strong.
Here’s the specification of eXceed 125cc engine:
Type: Four stroke Natural Air-cooled
No. of cylinders : One
Bore: 54 mm
Stroke: 54.4 mm
Engine displacement : 124.58 cc
Compression ratio: 9.5+/- 0.5 : 1
Maximum Net Power: 9.53 PS( 7.01 kW) at 7000 rpm
Maximum Net Torque: 10.85 Nm at 5000rpm
Ignition system: Microprocessor controlled Digital CDI, with TRICS incorporated in Carburettor
Ignition Timing: Variable Timing with Multiple maps
Fuel: Unleaded Petrol, 87 RON minimum
Carburetor: Side draught type,
Ucal – Mikuni VM16 with Auto choke/ Keihin FIE PTE16, with Auto choke
Lubrication: Wet sump, forced
Clutch: Wet, mulit disc type.
Bajaj wins the credit for making an advertisement for a engine(first in india!) Here’s the DTS-SI engine ad