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

Bajaj has already stated that it would gradually exit from the 100 cc segment owing to lower margins from the segment. With the price cut, which has been made possible to the tax benefits of the plant, BAL is taking rival Hero Honda head on.

By July the company plans to roll out a new motorcycle in the executive category, which could be priced around Rs 40,000 he said, adding BAL would go all out to move customers from the 100 cc segment to a new segment.

The company on Monday inaugurated its one million capacity plant, which has been set up with an investment of Rs 700 crore (rs 7 billion), with its vendors investing Rs 550 crore (Rs 5.5 billion).

"This plant is a global model which we plan to replicate overseas," Bajaj said adding initially the plant will manufacture the Platina.

Asked about the company's plans for high power bikes, Bajaj said the company would develop products in technical collaboration with Kawasaki, but manufactured and marketed under the 'Bajaj' brand.

On the reported foray of the company into the small car segment, he said it was not on the immediate horizon. "Our immediate focus is on four wheeler cargo, which will compete with Tata's 'Ace'," he said.