Both the companies are developing power plants for 125-350cc range. The Pulsar 125 Flag ship model will be powered by a Parallel Twin Cylinder Engine which points towards the technology that will be used. The Pulsar 250/350cc will carry a Parallel Twin Cylinder Engine with 4-Valves per cylinder featuring DOHC. This Engine will get Liquid cooling and Fuel Injection technology.
These engines are being co-developed by Bajaj and KTM in Mattighofen. 125cc Prototype Engine is already in the testing phase in various Chassis-Dyno at Bajaj Facility's in around Pune.
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