Will the new Bajaj bike, the 125 cc Exceed kill the 100 cc market? The company is certainly betting on it. Bajaj claims, its DTSSi technology has made the XCD the most fuel efficient bike in India and possibly the world.

Rajiv Bajaj, MD, Bajaj Auto hopes the new 125 cc XCD will not just rev up sales but also help the company close in on the number one slot. The XCD comes with the DTSSi technology, an improvemnet over the now much talked about DTSi tecnology. Bajaj says the twin spark swirl induction is what gives the XCD an edge in terms of fuel economy.

The company claims that the XCD gives a whopping 109 km per litre under ideal test conditions making it the most fuel effiecient bike in India and possibly the world. The company hopes, that the XCD will kill the 100 cc market for good, which saw a de-growth of 21% in the first quarter of this fiscal, while the 125 cc and 150 cc segments grew by 16%.

Bajaj said, "The charge, combination of fuel and air enters the combustion chamber with a swirl motion that enables it to burn better and contributes more energy for the same amount of fuel; so, it leads to greater fuel economy and lower emissions. So, it is good for consumer wallet and environment."

The XCD bares a resemblance to big brother Pulsar. It has the same sporty look, digital meter and twin led tail lights. Some interesting innovations are a small utility box on the side. Another world first, the company says is the way the front number plate folds over as the front suspension compresses, allowing the headlamp to be lowered, giving the bike its cheetah like stance.

Swirl induction has been used in passenger cars with great success. This is the first time that a similar technology has been adopted in a two-wheeler engine in India.

The bike will be priced at Rs 41,000, ex-factory. Production has begun at Bajaj's Waluj plant and the estimated run for September will be 20,000 units. Bajaj will now have a two month lead over TVS, as the 125 cc Flame is expected to be rolled out only in November. It will be interesting to see if the patent row impacts these two new launches.