Bajaj will gain access to the iconic Triumph brand, and its great motorcycles, enabling it to offer a wide range of motorcycles within its domestic market and other worldwide markets.
The objective of this non-equity partnership is to deliver a range of mid-capacity motorcycles. I have known Triumph Motorcycles for the last 10 years and now we both are comfortable enough to come together.
While Triumph will benefit from this partnership by expanding its global reach and entering new higher volume markets, Bajaj will, in return, gain access to Triumph's motorcycles and technology.
The new alliance will help Triumph enter new markets where Bajaj already has a strong presence, and help in expansion of its global presence in certain high-volume markets. His comments are aligned with Royal Enfield chief's comments in the recent past; Siddhartha Lal had stated that his company is aiming for the pole position in the global midsize (250cc-750cc) motorcycle market. With KTM motorcycles and its own Pulsar brands Bajaj has managed to cater to the sportsbike segment easily but there are "geners in the portfolio that were missing" as per Rajiv Bajaj.
Post the partnership announcement, the Bajaj Auto stock spiked 3 per cent to Rs 2,962 on the NSE, outperforming the broader Nifty which was in red. One-third of KTM's manufacturing happens at Bajaj Auto's Chakan plant near Pune.
We will share more details as we get further updates.
Bajaj earlier mentioned that big news from its end would be revealed shortly. While debuting in India in 2013, Triumph had shown interest in making India as an export hub to emerging markets.
In a telephonic conversation, Vimal Sumbly, MD, Triumph Motorcycles India told us that "We are excited about this new partnership; This will allow us to venture into new market segments in India and many other emerging markets". While Bajaj will play in the entry segment, KTM and Husqvarna will be present in the segment above Bajaj (200cc and above) while Triumph will play in the segment above that.