India's Bajaj Auto begins bike production in China

Mumbai, May 24 (PTI) India's two-wheeler maker Bajaj Auto
has begun production of its bikes in China for exports to
Nigeria, a potential market for low-cost and unbranded bikes.

"Earlier this month, we began production in China and
have shipped 1,000 made-in-China bikes to Nigeria through
India," Bajaj Auto Managing Director Rajiv Bajaj said at an
analyst conference recently.

Nigeria is believed to be a big market for unbranded
bikes priced between USD 300 and USD 400. The Chinese are
selling their bikes in the Nigerian market with a price range
of USD 300-400.

The company is targeting the unbranded segment in
Nigeria. It has named its bike Boxer and it would not carry
the Bajaj name. Bajaj, in association with Kawasaki, was
making the bike Boxer, which it discontinued in 2004.

Bajaj did not give the price of Boxer. However, the
market size of bikes in Nigeria has shrunk owing to the global
economic slowdown, Bajaj said.

In future, Bajaj would look at integrating the operations
in India and China paving way for the launch of Boxer in
India, he said.

By the end of this fiscal, the Chinese factory would make
10,000 bikes per month, he added.

Bajaj Auto, which reinvented itself into a bike maker
from scooter-maker in the 90s, is planning to enter the
scooter segment again.

"We are developing a new scooter and it will take at
least a couple of years before it is launched," Bajaj said.

The Bajaj scooter would compete with Honda Activa, the
most "successful model in the market", he said.

"We want to develop a clear USP for our scooter. It
needs to be rooted in specific technology," he said.

Bajaj, in association with Renault-Nissan, is also
developing a small car to be launched in 2011. Bajaj said the
small car would be launched as per schedule. PTI GN
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