Bajaj Auto managing director Rajiv Bajaj in Pant Nagar on Monday. A Telegraph picture

Calcutta, April 9: Bajaj Auto has made its 100-cc bike Platina cheaper by Rs 3,000. The price cut was made possible by the tax holiday in Uttarakhand where the company has set up a plant for the Platina.

“Starting from the first lot of bikes produced here, the Platina has now been priced at Rs 33,000, down from Rs 36,000,” Bajaj Auto managing director Rajiv Bajaj said.

Bajaj Auto had earlier said it would gradually exit from the 100-cc segment on account of lower margins.

By July, the company plans to have a motorcycle in the executive category, which will carry a tag of Rs 40,000, Bajaj said. Bajaj Auto will try to wean away customers from the 100-cc segment, he added.

Platina plant

The company today inaugurated its 1-million capacity plant at Pant Nagar in Uttarakhand. Spread over 30 acres, the plant has been set up with an investment of Rs 700 crore, with vendors investing Rs 550 crore. The capacity can, however, be expanded to 3 million.

“This plant is a global model, which we plan to replicate overseas,” Bajaj said, adding that initially the plant would manufacture the Platina.

The company has achieved another landmark by directly investing only Rs 150 crore in the plant, resulting in an investment cost of Rs 1,500 per vehicle.

The plant will also be supported by manufacturing facilities of 16 auto component vendors in the immediate proximity as part of a manufacturer-vendor partnership.

A part of the land allocated to Bajaj has been taken up by vendors to set up dedicated facilities to ensure seamless integration with the mother plant.

Other plans

Regarding plans for high power bikes, Bajaj said the company would develop products in technical collaboration with Kawasaki, though they would be manufactured and marketed under the Bajaj brand.

On the company’s reported foray into the small car segment, he said it was not on the immediate horizon. “Our immediate focus is on a four-wheeler cargo, which will compete with the Tatas’ Ace,” he said.

CNG bike

After successfully demonstrating the CNG technology in three-wheelers, Bajaj Auto is extending it to two wheelers with a planned launch within this month. “We are on schedule for a CNG two-wheeler. Something in this line will be launched this month,” Bajaj said.

Bajaj, however, declined to specify whether it would be a motorcycle or a scooter.

Bajaj Auto’s foray into the CNG two-wheeler category will mark a new chapter after it had proved its mastery of the technology in the three-wheeler category.

Bajaj also said that the company has developed a direct injection two-stroke three-wheeler.