Bajaj signs for fuel technology
SYDNEY, Australia (CNN) -- Indian motor cycle maker Bajaj Auto has signed a seven-year deal with Australia's Orbital Engine Corp. to use its fuel injection technology.
Bajaj will start using the new technology on its three-wheel autorickshaw vehicles from 2005 to help cut emissions.
Bajaj, based in Pune, is one of India's largest producers of two and three-wheel vehicles and its autorickshaw dominates the three-wheel segment in the country.
Autorickshaws are widely used in India to haul good and passengers. But more stringent auto emission standards beginning next year has focused attention on their contribution to air pollution.
Orbital said Monday that its direct injection technology would deliver better fuel economy and lower operating costs, along with reduced emissions.
Bajaj joint managing director Rajiv Bajaj said he had "great expectations" for the new technology.
"Outstanding fuel economy and reduced emissions, along with improved drivability, is exactly what our customers want," he said in a statement released to the Australian Stock Exchange Monday.
Bajaj reported Saturday that its sales of two and three-wheelers reached 121,000 last month -- up 22 percent from a year earlier. It is predicting growth of more than 10-12 percent for its two-wheelers in the year ahead.
It ranks No. 2 in the Indian two-wheel market, behind Hero Honda Motors.
Shares in Orbital Engine are up 7 percent to A$0.15 Monday afternoon.
The Australian engineering company shot to prominence in the 1970s with its unconventional rotary engine, but has focused more recently on direct injection technology for outboard engines, motor scooters and watercraft.
