The Pulsar 125 Neon is powered by a 125 cc, DTS-i engine which puts out 11.8 bhp of maximum power at 8,500 rpm and 11 Nm of peak torque at 6,500 rpm. The counter-balanced engine is said to be smooth in operation, even at high speeds. The Pulsar 125 Neon has a 5-speed gearbox which can be started by the rider in any gear by just depressing the clutch. The Pulsar 125 Neon has a kerb weight of 140 kg.
The Pulsar 125 is a result of a strategy to offset rising prices of motorcycles, especially with the new safety regulations which mandate combined braking system (CBS) for all motorcycles of 125 cc and above, and mandatory anti-lock braking system (ABS) on motorcycles with engine capacity of 150 cc and above. With the upcoming Bharat Stage VI (BS6) emission regulations coming into effect from April 1, 2020, which will mean all two-wheelers will need to switch to fuel-injection, prices are set to become even higher. These regulations have made the Pulsar 150 distant to customers in terms of pricing. The strategy is to have the Pulsar brand equity, and design, but in a smaller, 125 cc package, which will be more accessible to customers, yet retain the signature Bajaj Pulsar DNA.