all said and done,the important fact is,Bajaj is not able to compete with jap scooters coz people,no matter what,are so stuck up with activas and dios.

It will take much work to change this...and that Rajiv can't wait for...Maybe when the right time arises,we'll get to see a product from them in this segment

^^^on some news channel right?...I too watched.It was quite an interview... They did hint on something but rajiv had his mouth shut on that

NEW DELHI: Showing the rift in the Hamara Bajaj-famed two wheeler giant Bajaj Auto, group chairman Rahul Bajaj on Wednesday differed with his son
and MD Rajiv Bajaj's decision to exit production of scooters saying he was not only not convinced but was "hurt" by it. "I feel bad, I feel hurt," Rahul Bajaj said, but son Rajiv opined that solutions should come more from logic than emotions.

Rajiv Bajaj, who took over the reigns of Rs 8,500-crore group as MD a few years ago, had said last week that the scooter production would be stopped by the current fiscal to pave way for augmenting growth in the motorcycle segment."I can't say harm the company and its shareholders by doing something you should not do...But I am still not convinced. He (Rajiv) has tried to explain it to me," Rahul Bajaj said in an interview to a news channel.

Reacting to his father's remark, the company's MD Rajiv Bajaj said during the show: "I care less for the solution from emotions, I believe more in the magic of logic." Rajiv Bajaj had last week announced plans to exit from the scooter segment by end of this fiscal and focus exclusively on motorcycles in the two-wheeler category as part of the company's aim to become the world's biggest bike maker in future.

Bajaj Auto, which revolutionised the two-wheeler market in the country through its ‘Hamara Bajaj' campaigns in the 1980s and 90s, today sells just one scooter model — the 100-cc gear-less Kristal.

"Brands that are more sharply positioned are brands that are more profitable...It (scooter) is not a really profitable market," managing director Rajiv Bajaj said on the issue.

He, however, hinted the company might one day come back into the scooter segment. "We have some good ideas on how to bring back the magic of a new kind of scooter. If we come back on the strength of a new category, I think we will not only have a scooter business but also a very profitable scooter business," Rajiv Bajaj added, without giving details.


Source : http://timesofindia.indiatimes.com/b...ow/5345625.cms

Bajaj simply not capable of running scooter business.. just think about waiting period of Activa, people ready to wait in the queue and buy it at 52K which is same as ~125CC bike in the market.. If he could sell Chetak around 40K, he can mint money.. Honda and Sujuki just charging premium and those scooters way over priced..
Otherwise, they should spinoff scooter business and run it separately.