British Triumph Motorcycles and India’s Bajaj Auto Ltd have officially signed the long-pending joint venture agreement. The objective is to Manufacture 200cc-750cc Mid-sized motorcycles by 2022.
As the majority of us know Triumph and Bajaj first announced their partnership back in August 2017. This is because the demand for mid-sized 200-750cc bike segment has been growing in and outside of the Indian markets. However, after two years, they have finally commenced their partnership in 2020.
“Triumph will lead in all matters related to the brand. But when it comes to the product, including the development, production, engineering, purchasing, while a lot of that we will do together. Bajaj will look after the downstream activities. It takes time to understand all that.” said Rajiv Bajaj, managing director, Bajaj Auto Ltd during the commercing event. Reasoning why the two companies took so long to formalise the arrangement. Live Mint
On the 24th of January, these two Automakers have entered into a long term non-equity partnership to manufacture Mid-sized models for India and the World. At the press conference in Pune, India Triumph Motorcycle’s Chief commercial officer Paul Stroud said the first Bajaj-Triumph bike would be available from 2020 with the price tag less than 2lakhs for a 200cc motorcycle.
“This is the first time that Triumph Motorcycles has entered into a partnership of this nature with any other vehicle manufacturer. This is our first major collaboration, it is crucial as it will help us expand globally and tap demand from younger buyers in emerging markets,” said Nick Bloor, Triumph Motorcycles CEO as quoted from Live Mint.
The agreement enables Triumph to get a grip of Baja’s strength in Manufacturing, supply chain and distribution. Since Bajaj is playing strong around these fields in India and also export market such as Africa. As for Bajaj, they get to enhance the scale of operation and participate in the profitable premium motorcycle segment. Also helps them in expanding outside of India. However, the bikes produced under the pact will only be a part of Triumph’s range.
Conclusively, by both of them partnering together, the goal in using both their strengths to come up with a product to fulfil the requirement of the target market is highly achievable. We are looking forward to seeing what’s coming up in the near future.