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Bajaj Auto manufacturing bikes in China

15721 Views 4 Replies 5 Participants Last post by  scubb
November 22, 2006 05:16 IST

In a major victory for Indian automobile industry, Bajaj Auto Ltd (BAL) has been able to stop the import, marketing and sale of the copied version of its premium bike Pulsar in Sri Lanka.

The Chinese company, Taian Chiran Machinery Company Ltd, had been reportedly marketing a copy of top selling Pulsar in different Latin American markets under Gulsar brand and had launched it in Sri Lanka few months back under the Ranomoto brand.
The Chinese company has tied up with a Lankan local dealer, Ranatunga Motors Pvt Ltd, which had marketed and had sold 26 Ranomoto bikes in Sri Lanka. Bajaj, which is already fighting a battle over intellectual property rights (IPR) over the manufacturing and marketing of Pulsar under various brands by the Chinese company, had filed a petition in Sri Lanka, one of its foremost overseas export markets.

On Bajaj's petition in the Sri Lanka High Court of Western Province, the Lankan dealer has undertaken to immediately stop sale of Ranotono bikes and stop all import and sale of similar bikes.

BAL is already in battle with the Chinese maker for copying its products and even marketing them under the Bajaj brand.

Society of Indian Automobile Manufacturers (SIAM) has already filed a complaint with the Chinese embassy over IPR violations and has also raised the issue on several bilateral forums.

SIAM director Sugato Sen said, "The problem is affecting the entire automobile industry in India. We have taken up the matter with the ministry of commerce and several trade bodies to settle the issue but are not aware of any action yet."

For BAL, the matter is far more serious than just copying. A similar look-alike of its three-wheeler model Bajaj Autorickshaw is being sold under the same name in China and despite following the lengthy process on IPR violations there has been no respite till date.

However, the settlement on the brand copying and faking issue in Sri Lanka will be a big breather for it, as Bajaj is trying to establish itself as a major two-wheeler player in the global market.

Bajaj is setting up an assembly unit in China and has already started selling Pulsar bikes and its three-wheelers in Indonesia, with the initial target of 100,000 and 10,000 respectively.
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Indian Motorcycle giant Bajaj plans 125 cc motorcycle for Chinese Market

Bajaj, a company that is bugged by Chinese copy bikes, is planning to counter attack. Sources close to Bajaj say the 2-wheeler maker will enter the Chinese market with a brand new 125 cc motorcycle, which will also be sold in Nigeria.

* This bike will have a 125 cc engine and will retail at around $500.

* Bajaj is trying to make use of cheap labor in China, but what remains to be seen is whether they will be able to compete with the established local brands, who dominate the 2-Wheeler industry in China.

* Bajaj will introduce the low-cost bike under a different brand name to keep its brand image in tact as they have plans for making several high capacity bikes for other overseas markets.

After success of the Pulsar and Discover, Bajaj’s think tank is well equipped to handle pressure situations, and the design team is expected to bring out a low cost design that doesn’t look tardy.

Bajaj is already in the business of low-cost cars as they are preparing the much awaited Ultra Low Cost Car (ULC) for a 2011 launch in India with partners Nissan and Renault.

It’s early times to predict anything else, but the Indian and Chinese markets are dissimilar, and the competition Bajaj will face in China is going to be many times compared to that in India.

IAB Comment- To make life easier, Bajaj should tie-up with any of the locals who will be able to distribute and service their products in China. 100% localization is the only way Bajaj can compete with Chinese brands. Take that from me.

Source- indianautosblog[dot]com

What do you reckon? Will they be able to compete with Chinese bikes? What do they have to do to be successful? Any ideas for Bajaj ??
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May 26, 2009
India's Bajaj Auto has announced that they have now started manufacturing bikes in China for export purposes.

These bikes are being exported to international markets like Nigeria where there is a high demand for low cost bikes.

Bajaj Auto Managing Director Rajiv Bajaj spoke about the new developments: “Earlier this month, we began production in China and have shipped 1,000 made-in-China bikes to Nigeria through India.”

The bikes being sold in Nigeria are not branded Bajaj [but as Boxer], as unbranded bikes are very popular in that market.

Bajaj is hoping to manufacture 10,000 bikes per month at their unit in China.

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why don't they make the bikes in india?

surely the wages are pretty similar or lower?
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