Bajaj Auto and Triumph Motorcycles announced a partnership in 2017 but the signing of formal agreement between the two parties is yet to happen due to multiple delays in sorting out the finer details. The companies are closer to reaching a final agreement.
Speaking to Economic Times on the sidelines of EICMA 2019 in Milan, Italy, Triumph Motorcycles’ chief product officer Steve Sargent and chief commercial officer Paul Stroud stated that the multiple delays in signing the formal agreement does not impact the product development process. The duo went on the confirm that Triumph has already conducted early testing of prototypes of products under the partnership.
The publication also reports that Rajiv Bajaj, Managing Director, Bajaj Auto, recently visited Triumph Motorcycles’ HQ in Hinckley, UK, to monitor the product development. The focus of this Indo-British collaboration will be the global medium displacement motorcycle segment (250 cc to 750 cc). In India, Royal Enfield has a near-monopoly in this segment.
Multiple derivatives (cruisers, adventure tourers, roadsters, etc) are expected from a common engine platform to cover a wide range of segments and audience. In India and other countries where Triumph has its network, the products will carry the British badge while Bajaj will take the products to markets where it has network but Triumph does not. While Triumph is expected to handle majority of the research and development responsibility, Bajaj Auto will be in charge of manufacturing the products for global consumption.
Triumph officials confirmed that the arrangement between the two entities will be royalty-based and there will not be any cross-shareholding. The companies will hold on to their respective intellectual property rights.
Triumph Motorcycles previously attempted to come up with a 250 cc motorcycle on its own but the economics of an entry level premium motorcycle proved to be a too big a challenge. With Bajaj’s advantage of economies of scale and expertise in cost-effective production, Triumph is expected to hit the sweet spot with its upcoming middle-weight products.
The formal agreement between Bajaj Auto and Triumph Motorcycles is expected to be signed anytime soon. The first of the products under this collaboration is expected to be ready by 2022.
