While I was there, they asked me to try out a new Chinese scooter that Bajaj is selling that is priced as a direct competitor to the Buddy 125.

The Argo AR150-18
Here's some vitals from the Bajaj USA website:
* Dual cylinder hydraulic disk brakes FRONT AND REAR
* Very low emission 4-stroke engine, 150cc, air cooled, 8.5 HP, overhead camshaft, oil pump circulation, oil filter, automatic variable advance electronic spark magneto ignition
* Automatic CVT transmission
* Electric and kick start
* 12 volt electrical system, high output 98 watt generator
* Telescoping front fork suspension, hydraulic damping with variable rate springs
* High performance 3.50 X 10 tires, 4 ply rating
* Top speed 55 mph+
* Curb wt. 225 lbs.
* Max wt. 628 lbs.
* Max recommended total weight for driver & passenger, 403 lbs.
* Seat to ground distance, 30"
* Covered by a 2 year warranty
Other than the slightly larger engine, there isn't a lot different from the Buddy 125. I'm going to go on record right now and say that I think the Buddy is a more attractive bike. This bike has that generic Chinese bike look, and Gene from SO pointed out that it looks near identical to the TNG Milano.
Now I took it for a spin around the complex, so I didn't get to try out any real hills, but I did get a good feel for the bike. Also, I should point out that the test bike was fresh out of the case, and not even properly prepped yet. That aside, here's what I noticed:
First off, the mirrors on this bike are better than the stock Buddy mirrors. They are much easier to position, and they are actually useful. That said, they look like new scooter mirrors, not the classic Buddy style.
The handle grips and the break levers feel pretty solid. There's nothing to complain about here. The spedo is separated from the gas meter, making it somewhat easier to read than the Buddy's. Again, the Buddy wins on style in this department. The turn signal is very similar to the buddy. It has the same release button in the middle that makes disengaging the switch very easy. Where it loses out is the clicker noise. The Buddy has a very snappy and loud clicker noise that you can easily hear while you're riding. The Argo has more of a light bell tone that isn't quite as good. Also, the timbre and volume of the horn are not as good as the stock Buddy horn.
The Argo also has an open glove area like the buddy 125, but far smaller. I'm not sure if any of you folks make use of the Buddy mega cup holder, but if you do, you probably wouldn't like this one. You can see a picture further down in the post when I show the back view of the bike.
As far as the tires go, they look the same as the Buddy's to me. Also, the amount of leg room looks about the same, though the Argo's body isn't quite as curved as the Buddy's so I think you'll have fewer options as to where to put your feet. That said, the Argo, by my estimation, is a slightly larger bike than the Buddy 125. Take a look at the front:

The faring is definitely wider, and this is mostly a plus. After riding the Buddy 125 for a while, I can tell you that the bike doesn't afford your legs a lot of protection from wind or rain. This bike will shield your legs more. That said, the Buddy 125, being so small, is absurdly trivial to sneak into a bicycle rack. This might give you a little more trouble, but not a lot more.
A few more observations before I get to the actual riding. Like the Buddy, the Argo has a side stand, a kick stand, and a kick starter. The model I rode did not cut off the engine while the side stand was down, so I think that needs to be addressed before the DOT will allow it for sale. Also, there's less room under the seat. That may not actually be fair, but the shape of the underseat compartment is definitely different from the Buddy 125. I use an XL size full face helmet from HJC. My Buddy can just BARELY fit that helmet under the seat. The Argo can't hold it.
Ok, so how does it handle? The answer: superbly. The Argo has the same feeling as the Buddy like it just wants to stay upright no matter what you do to it. Leaning around corners and even very slow speed U-Turns are absurdly easy. I'd say it's as easy to ride as the Buddy.
The bike also, in my estimation, has a little more kick than the Buddy. I gunned it from a stop, and I took off. I'm not sure that I can call this a big selling point, cause the Buddy is very zippy, but my guess is that it probably handles hills a bit better. I would have to actually take one up a steep hill to be certain.
The one thing that stands out on the Argo is the suspension. When I ride the Buddy, I feel very bump on the road. When I was driving out to Scooters Originali on my Buddy, my ride home who as following me, actually got scared that I was going to bounce off. The Argo, however, is like riding on a stack of pillows. I gunned the bike over minor pot holes, and a few speed bumps, and I took them all without complaining. It is clearly the winner in this respect, and it has further implications than just avoiding a bumpy ride. Turning on the Argo feels much smoother than on the Buddy as well. It just feels nicer to ride than the Buddy.
The one ride related aspect of the Argo that falls behind the Buddy is the seat. Here's a shot of the Argo from the back:

As you can see, there is a small crook in the seat. I assume that, and the little backrest, are there for riding double-up. For a single rider that wants some leeway in where they want to sit, it sucks. I can sit further back on the buddy seat and still feel just fine. The Argo only feels comfortable on the front of the seat; once you try to move backwards, it just doesn't feel right. This may not be a big deal if you're not tall, but if you are, you might like the Buddy positioning better.
One more item that bears mention is the placement of the gas cap. As you can see in the rear picture, the gas cap is on the back of the bike, and not under the seat like the Buddy. I'm not sure if this is a deal breaker, but the Buddy has it beat here.
So, my overall impression is that, while the Argo loses to the Buddy 125 on styling, I think it's overall a better ride. Most of that, I would say, is the far superior suspension. It just feels better to ride. Also, it does feel like there's more of a kick to the bike.
The only reservation I have about the bike is that it is a Chinese bike, and all my scooter research, and spending days on the phone with the NHSTA and the State of NJ has made me very leery of any bikes imported from China. You never can tell what quality you're getting, you have to worry if their EPA stickers are real, and most of the time, you're getting a bike from a fly-by-night organization that is just selling you crap out of shipping crates.
The upside for the Argo is that Bajaj is an actual brand most people recognize, so I would hope they would maintain a certain level of quality. The test bike I drove certainly felt more solid than other Chinese bikes I've seen. Secondly, though I don't know whether Scooters Originali intends to sell these bikes, if a quality shop like SO sells a Chinese bike and stands by it, that would give me more faith.
So, I'm not sure if these bikes are available anywhere yet, but if you're looking in the Buddy 125 price range, I'd say to check them out. There are a number of reasons you might like the Buddy better (styling, underseat storage, gas cap placement, seat), but this is a pretty decent bike.