Pune-based two/three-wheeler maker Bajaj Auto has inked a partnership with UK-based Triumph Motorcycles to make a brand-new range of mid-size motorcycles in India.
The motorcycles will be sold under the Triumph brand, however, the production and distribution will be handled by Bajaj Auto.
Through this non-equity partnership, Triumph and Bajaj Auto are targeting the young generation.
The first motorcycle to come out of this partnership will be priced under Rs. 2 lakh and will be launched by 2022.
Initially, they will introduce a new engine and platform for the mid-capacity range, which will start from 200 cc, going all the way up to 750 cc bikes, and offer multiple options to address different segments in this class.
The new bikes will be produced at Bajaj Auto’s factory in Chakan, Pune and it will be shipped to all major markets around the world. With this partnership, Bajaj Auto eventually takes charge of Triumphs distribution in India as well.
The Triumph Bajaj collaboration will combine strengths in design, technology, cost-competitive manufacturing and intimate knowledge of key target markets to deliver a range of production.
This will create a new entry point to the Triumph range around the world, and ensure Triumph can compete in important large segments of the global motorcycle market, and attract new customers to the brand.
Bajaj Auto is confident of working alongside Triumph and to leverage each others strengths and expertise. There will be a huge appetite in India and other emerging markets for these new products.
This JV here will have no equity investments and this partnership was based on mutual benefit.
This JV will design, engineer, develop and manufacture together and create a new engine platform which will have multiple options, adding that though the agreement took time, both partners had spent this time working together on R&D with both teams
For Bajaj Auto, the tie-up with Triumph is an entry into the segment of the sub 500 cc range where it will find it difficult to sell a Bajaj product in the lifestyle or luxury segment.
These products will not go with a Bajaj badge and will be sold only as Triumph bike
The company has stated that it wanted to be a versatile motorcycle manufacturer that can sell a $400 bike in Africa to an €8,000 bike in Europe.
This JV is also eyeing the South-East Asian, African and Latin American markets, where Royal Enfield is present.
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