Bajaj Auto ties up with Triumph Motorcycles to make mid-capacity motorcycles

Indian motorcycle maker Bajaj Auto has entered into a global partnership with British two-wheeler company Triumph Motorcycles .

"The objective of this non-equity partnership is to deliver a range of outstanding mid-capacity motorcycles benefiting from the collective strengths of both companies," said a joint press release from the motorcycle companies.

Bajaj Auto had been in talks with Triumph Motorcycle regarding this enterprise for the past six to nine months, sources said.

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This new partnership will help Bajaj to access technology and vehicles from Triumph Motorcycles, as well allow Triumph to expand its global market presence substantially by penetrating emerging markets promising better demand. In its tie-up with KTM Motorcycles, Bajaj had helped the Austrian company to increase its global sales volume from 65,000 to 2,00,000 units, reports said.

However, a definite course of action on how these two motorcycle companies will collaborate is yet to be declared, with the two companies promising that more information will be shared in this regard in coming days.

This partnership is likely to up the ante for existing mid-capacity motorcycle players, though, especially Royal Enfield . The Chennai-based motorcycle company has been largely unchallenged in the 350-cc and 500-cc segments in India on account of its legacy and brand presence.

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Bajaj Auto, a prominent player in the 200-cc and sub-350-cc markets with its Pulsar and KTM line-ups, can venture into the 500-cc segment with support from Triumph Motorcycles. Partnering with Bajaj Auto, Triumph can again take up its plan to manufacture lower displacement motorcycles in the 500-cc segment.

Presently, Triumph the least powerful bikes from Triumph have a 675 cc engine, going up to 2294 cc.

Scrapping plans of a manufacturing unit worth Rs 850 crores in Karnataka, Triumph can use Bajaj's facility in Chakan near Pune as a manufacturing and export base. The facility might be used to manufacture mid-capacity vehicles, which are then exported to emerging vehicle markets with higher volumes.

Entering Indian markets in 2013, Triumph had expressed intentions of developing an export hub in India while targeting the growing markets in nearby regions. Entering the mid-capacity segment with Bajaj Auto will again help Triumph in expanding its global presence.

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Bajaj will also be looking to expand its portfolio by teaming up with Triumph Motorcycles. The company has been producing two-wheelers for the daily use like CT 100 and Platina as well as sports bikes like Pulsar and others under its KTM and Husqvarna subsidiaries. A partnership with Triumph will help Bajaj feature prominently in the cruiser motorcycles category.

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