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Indian two-wheeler giant Bajaj Auto has signed a deal with Triumph Motorcycles of UK to jointly manufacture mid-capacity motorcycles for the Indian and global markets.
The partnership will be a non-equity tie-up to leverage Bajaj Auto’s low-cost expertise to create a value proposition in the 400CC-800C segment.
There is a growing demand for leisure bikes in India and this tie-up with Triumph is a step towards addressing that need. The idea is to combine Triumph’s global brand image and Bajaj’s low-cost manufacturing prowess.
Sharing his views, Shrikant Akolkar Research Analyst- Automobiles, Angel Broking, said, “Triumph bikes globally start from 675CC and this tie-up will give them an opportunity to scale down the capacity curve.”
For Bajaj Auto, this is an important step in search of an exciting two-wheeler story in India. Bajaj, currently, exports 50 percent of its production but in the domestic market it has fallen to fourth position. This erstwhile leader in two-wheelers is now ranked behind Hero Moto, Honda and TVS Motors in the domestic market.
Currently, Bajaj already has a tie-up with KTM of Austria and Husqvarna (also of Austria). In the new set-up, Bajaj bikes will cater to the entry segment, KTM and Husqvarna to the mid-segment and Triumph to the premium segment.”
