Kawasaki plans to set up a new plant in Pune – Bikes could get cheaper
Kawasaki and Bajaj Auto ended their 8 year alliance earlier this year. It is now being reported that Kawasaki also wants to move out from the Bajaj Chakan plant, and setup their own plant.
India Kawasaki Motors Pvt. Ltd. (IKM), a 100% subsidiary of Kawasaki Heavy Industries Japan established in India in July 2010, announced earlier this year that Kawasaki motorcycles in India will be sold through Kawasaki’s own network in India. After sales service will also be undertaken by the network itself. Before this, the responsibility of sales, and after sales service lay with Bajaj India.
The Kawasaki Bajaj Auto Ltd. alliance detailing sales and after-sales service of Kawasaki motorcycles has been sold from the Bajaj dealer network (Probiking) since 2008. The alliance survived a good 8 years.
Over the last few years, Bajaj Probiking network has been working as KTM dealerships. Bajaj – KTM partnership introduced the co-developed Duke 200 in 2012. In the last 5 years, KTM reported 48 percent CAGR. FY17 sales volume is pegged at 37000 units. Duke and RC bikes are currently sold at 300+ KTM dealerships in India. In the years to come, Bajaj wishes to finetune its focus on KTM.
Kawasaki and Bajaj end the alliance in India amicably from April 1, 2017 with IKM taking over sales, and after sales service. At that time, it was reported by both companies that they will maintain their co-operative relationship globally for current and future businesses. But, as per a new report by Autocar Pro, that is not the case.
The 300 and 650 cc Kawasaki bikes are being sold as CKD. Their big bikes are sold as CBUs, as direct imports. Those sold as CKDs, are being assembled inside the Bajaj Chakan plant. But now, Kawasaki wants to move out and setup their own plant, as per the report.
If this is indeed going to happen, it will be good news for buyers as the price of their bikes might get reduced as Kawasaki will no longer need to pay royalty to Bajaj. The report reveals that Kawasaki will have total control over operations right from procurement of spares and warehousing to quality checks and after sales service. Teams for these various operations are being set up and IKM plans on moving to this new location just prior to the festive season.