Bajaj Auto India, Triumph Motorcycles UK Announce New Partnership

Indian two-wheeler manufacturer Bajaj Auto and UK-based bike maker Triumph Motorcycles on Tuesday (8 August) has announced their global partnership.

The objective of this non-equity partnership is to deliver a range of mid-capacity motorcycles.

Talking about the tie-up, Shrikant Akolkar (Research Analyst- Automobiles, Angel Broking) said, “The partnership will leverage Bajaj’s low-cost expertise to create a value proposition in the 400-800cc 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. 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 per cent 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 MotoCorp, Honda and TVS Motor in the domestic market."

The companies added in a statement, “We hope to bring to bear upon global markets the individual strengths of the partners including brand position and perception, design and development technology, quality and cost competitiveness and worldwide distribution.”

This new global partnership will enable Triumph to significantly expand its global reach by entering new higher volume market segments, especially within the emerging markets across the world.

Bajaj Auto, on the other hand, will gain access to the Triumph brand, enabling it to offer a wider range of motorcycles within its domestic and other international markets.

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.