Bajaj Auto, Triumph ink alliance for global play

Bajaj, Triumph form partnership to build mid-capacity bikes

Bajaj Auto has announced a partnership with United Kingdom based Triumph Motorcycles to manufacture and sell middleweight motorcycles in India.

Motilal Oswal has maintained a buy on 2-wheeler manufacturer Bajaj Auto with an upside potential of 13 percent for target price of Rs 3,281, after the company declared a partnership with UK's Triumph Motorcycles aiming to develop a range of mid-capacity (250-750cc) motorcycles. Triumph's portfolio includes high powered bikes like the Rocket III, Speed Triple, etc. This alliance will help Bajaj to go upscale in a segment of relaxed motorcycles that will probably exist alongside, or perhaps higher than, the existing KTM Duke and RC family. The targeted segment, generally with motorcycles having engine capacity between 250cc to 600cc, is now untested by both the players. The total number of shares traded during the day was 81532 in over 6453 trades.

It is to be noted that the company plans to roll out made-in-India (Chakan unit) Husqvarna motorcycles globally next year. Of these, a reasonable proportion of consumers are bound to upgrade to the premium motorcycle segment. Whereas, the whole of Royal Enfield's offering falls into that range. KTM had secured a long-term licence agreement in the year 2013 for Husqvarna Motorcycles.

The new models will be Triumph branded and benefit "from the collective strengths" of both the British marque and the Indian giant, according to a statement.

The first models, Vitpilen 401, Svartpilen 401 and Vitpilen 701 will be produced in Mattighofen, Austria, and launched in early 2018.

Bajaj, the second largest motorcycle manufacturer in India and the third largest in the world, has a range of products - from the 100 cc Platina to the 373 cc Dominar. This is expected to enable the brand to expand its reach and increase its sales. It is clear that chasing KTM and BMW Motorrad, now Triumph Motorcycles is also gunning for new demand for mid-capacity motorcycles in the emerging markets including India.

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