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Triumph, Bajaj to develop bikes for global market

Rajiv Bajaj, Managing Director, Bajaj Auto Ltd and Nick Bloor, CEO, Triumph Motorcycles announce the start of the partnership between Bajaj Auto and Triumph Motorcycles, at Bajaj Auto in Pune.

Rajiv Bajaj, Managing Director, Bajaj Auto Ltd and Nick Bloor, CEO, Triumph Motorcycles announce the start of the partnership between Bajaj Auto and Triumph Motorcycles, at Bajaj Auto in Pune.   | Photo Credit: Special Arrangement

Motorcycles in the range of 200 cc and 750 cc will be developed by this alliance and the first product will be priced below ₹2 lakh

British company Triumph Motorcycles and Bajaj Auto Ltd. on Friday entered into a long-term, non-equity partnership to develop, manufacture a new range of mid capacity Triumph motorcycles in India and for selling globally.

The first product from this partnership to be manufactured at Bajaj’s Chakan plant near Pune will hit the market in 2022. Details of the financial arrangements between the two companies have not been revealed.

Motorcycles in the range of 200 cc and 750 cc will be developed by this alliance and the first product will be priced below ₹2 lakh.

The agreement was signed in Pune, the headquarters of Bajaj Auto.

“This is a unique moment, where two world-class companies that are passionate, as well as product focussed, are coming together to build a brand-new range of mid-capacity motorcycles,” Bajaj Auto said. “The partnership will see the two companies with their respective strengths in large and small capacity motorcycles collaborate to design, engineer, and manufacture a range of mid-capacity motorcycles.”

Bajaj to take over Triumph’s Indian distribution activities

Triumph, which sells 60,000 units annually, will see its volume growing substantially as this partnership will offer mid-sized products in high volume emerging markets, including India.

As per the agreement, Bajaj will become one of Triumph’s key distribution partners in new markets for the Triumph brand around the globe.

Going forward, Bajaj will take over Triumph’s Indian distribution activities at a date yet to be confirmed, leveraging the expertise that Bajaj has in this region.

In other key overseas markets where Triumph is not currently present, Bajaj will represent Triumph and offer the new mid capacity bikes as part of the full Triumph line-up.

In all other markets where Triumph is present today, the motorcycles developed together from this partnership will join the current Triumph product portfolio and be distributed by the Triumph led dealer network worldwide.

Lauding Indian frugal engineering and manufacturing capability, Triumph Motorcycles CEO Nick Bloor, said: “This is an important partnership for Triumph. Besides taking our brand to crucial new territories, the products that will come out of the partnership will help attract younger customers. This is another step in our ambitions to expand globally, particularly in the fast-growing markets of South East Asia.”

The move will also drive growth in more mature territories like Europe, he added.

Learning process for Bajaj

Rajiv Bajaj, managing director, Bajaj Auto Ltd., said: “Today is truly a special day for us. Triumph brand is an iconic one the world over and we are confident that there will be a huge appetite in India and other emerging markets for these new products.”

“We look forward to working alongside such a famous motorcycle company and to leveraging each others strengths and expertise to make the relationship a success for everyone,” he added.

He said the company decided to go for this partnership because Bajaj was not known for producing high powered bikes and it would be a learning process for Bajaj in making bikes for the iconic brand.

Triumph Motorcycles had earlier tried to develop a mid-range of bikes on its own, but had failed to achieve competitive pricing argets.

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Printable version | Feb 27, 2020 11:21:33 AM | https://www.thehindu.com/business/markets/triumph-bajaj-to-develop-mid-range-bikes-for-global-market/article30650134.ece

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