Bajaj Auto is half way through the development of a 350cc Bajaj Pulsar scheduled for commercial launch by 2012. The fastest iteration of the Pulsar is expected to come with liquid cooling but Bajaj engineers are finding it tough to design a effective cooling system, which is essential for such a high capacity powerplant.

The reason for using an oil cooled system over a water cooled system is the saving in space and weight. Lesser weight will help in better performance and mileage. The 350cc engine platform would be used in various variants and will help Bajaj to foray into the premium motorcycle segment in many countries including India.