In a recent meeting with shareholders, Rajiv Bajaj, MD of Bajaj Auto, had revealed that they are very close to finalizing an alliance. He did not reveal what the deal is, who the alliance is with. But he confirmed that the announcement will be made in one or two weeks time.
Today, Bajaj Auto has finally announced who they were talking about in the AGM. It was the iconic British brand – Triumph. Yes. Bajaj Auto and Triumph Motorcycles today announced a global partnership.
In the recent years, it has been noted that Rajiv Bajaj, MD of Bajaj Auto, has been trying really hard to break the strong-hold of Royal Enfield brand. The launch of Dominar 400, and now the announcement of their new partnership with Triumph seems to be a move in this direction as well.
At the 10th annual general meeting, Rajiv Bajaj said, “KTM rides in a space which is sporty riding. There is also another world out there which is the world of easy riding, the world of Harley-Davidson, Triumph and Royal Enfield. This segment so far was the only missing piece in our puzzle.”
“(This partnership) open up enormous possibilities because that is a brand, that is the format of products that is even more suitable. So if KTM and Husqvarna can do half a million motorcycles a year believe me they can do a million motorcycles together,” added Mr Bajaj.
As per the press statement, the new Bajaj-Triumph partnership is a non-equity partnership. It has been formed to deliver a range of outstanding mid-capacity motorcycles for the global market. (Currently, Royal Enfield is the leader in the mid-capacity motorcycle segment).
Bajaj – Triumph Partnership
The non-equity partnership is aimed to fill opportunities in the mid-capacity segment, a segment that has been growing rapidly in India in recent years. This would obviously mean new developments and products derived from the collective strength of both manufacturers.
Triumph Motorcycles and Bajaj will through the partnership take their individual strengths, brand positioning, and brand perception to a global market. The coming together will optimise synergies in design and development technology, and strive towards better quality and cost competitiveness to cater to a global distribution network together.
Through the new partnership, Triumph Motorcycles will benefit from an expansion in global reach by foraying into bikes in higher volume market segments. Apart from an increase in production, the company will be able to take its business to more emerging markets worldwide.
The arrangement gives Bajaj access to Triumph’s iconic heritage, and great bikes. This allows Bajaj the opportunity to offer a wider range of bikes in the domestic market, as well as in international markets. In India, and its export countries, Bajaj sells Dominar 400cc bikes in the higher displacement segment. Other than this, they also sell the Pulsar and Discover range in international market.
Both companies are keen on the opportunities this partnership affords, and look forward to the prospect of doing business in newer bike segments in order to tap into new buyer markets globally. The arrangement will offer both manufacturers the opportunity to tap into each other’s strengths and market prowess since both manufacturer’s though triumphant have proved their mettle in displacement segments widely different from each other. Bajaj has grown from strength to strength on the back of the Pulsar range while Triumph is known for its big body cruisers.
