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Long story short: Find out all you need to know about the exciting Bajaj Triumph partnership in India right here
As we all know, Bajaj is one of India’s top motorcycle manufacturing companies and comes in the top 5 when considering the sales volume alone. While talking about R&D and business partnerships, Bajaj is always ahead of competitors with tactical partnerships with premium motorcycle companies. By the year 2023 itself, they had made around 4-5 strategic partnerships, which is a remarkable thing. Collaboration is always challenging as both parties should agree on terms and conditions.
Benefits of business partnership
In a motorcycle business partnership, businesses come to terms by asking for technical assistance from other companies. As in return, premium foreign companies ask for their vast services and sales capabilities to market and sell their products. In some cases, manufacturing of foreign models is in the domestic manufacturing plant, so they spend fewer crores on setting up a manufacturing plant.
The benefit behind all these is that foreign companies can cut down import costs drastically as a Completely Built Unit (CBU) import method is very expensive compared to a Completely Knocked Down (CKU) import method, as most foreign companies depend on CBU. The problem with CBU is that import costs and other duties are very high in India and have got a hike. So most foreign companies avoid the same. CKD is better than CBU, but local manufacturing is the best option.
The motive of the Honourable Government of India is to invite companies to invest in India rather than just import, as it can bring more jobs within India. But in this partnership, what benefits most Indian companies is the technological knowledge transfer, which gives them an edge over their competitors. In sales and marketing, most Indian companies provide dedicated space for foreign company models to exhibit their products within their showrooms. When foreign companies agree with local manufacturing within India with the help of the business partner, they can export models from India to other parts of the world. The main USP behind this is that labour and additional costs are meagre in developing countries like India.
A brief history of all partnerships of Bajaj
Bajaj-Kawasaki partnership
Kawasaki partnered with Bajaj Auto Ltd. in 1984 and cooperated to expand the production and sales of motorcycles in India. India Kawasaki Motors broke ties with Bajaj Auto Ltd. in April 2017.
Bajaj-KTM partnership
The Bajaj – KTM partnership started in 2007 when Bajaj Auto International Holdings (BAIHBV) picked up a 14.5% stake in KTM Power Sports AG. BAIHBV gradually increased its stake to 48%, and BAIHBV swapped 46.5% of its holding to gain a 49.9% stake in KTM group’s parent company PTW Holding AG (the ) in 2021. Today, Bajaj Auto Ltd. manufactures small-displacement KTM & Husqvarna motorcycles at its Chakan plant in Maharashtra.
Bajaj-Husqvarna partnership
Husqvarna is part of the KTM AG group, which owns motorcycle brands KTM and Husqvarna. Bajaj Auto manufactures sub-500cc motorcycles for KTM and Husqvarna in India. Some models are sold within India, while others are exported to several countries.
Bajaj Triumph partnership in India
On April 10th, 2023, it was announced that Bajaj Auto Ltd and Triumph Motorcycles Ltd had successfully transferred Triumph’s India Sales & Marketing operations to Bajaj Auto. The partnership follows the announcement back in 2020 of the strategic partnership between the two companies. Collaboration confirmed that they would collaborate to create a new range of mid-sized Triumph Motorcycles. The agreement launches the next partnership phase, effective April 1st, 2023. From this date, all the current 15 Triumph Motorcycle dealerships will be managed by Bajaj Auto.
These are the official words taken from the press release of Bajaj Auto Ltd on their official website. As we have already discussed, we have seen a typical partnership over the past decades. Bajaj Auto Pvt Ltd will handle Triumph India’s sales and marketing. Meanwhile, the mid-sized Triumph motorcycles will be manufactured collaboratively.
Benefits for Bajaj in Bajaj-Triumph partnership
- First and foremost, the sharing of technology with Bajaj Auto Pvt Ltd.
- They will have access to the iconic Triumph brand and can offer premium models within domestic and international markets.
- They will have more diversity within their motorcycle portfolio and can compete against Royal Enfield, Jawa, etc.
Benefits for Triumph in Bajaj-Triumph Partnership
- Triumph India can access the vast sales network of Bajaj Auto and can penetrate the Indian market deeper.
- They can significantly reduce production and investment costs.
- Triumph India can now manufacture and enter the 200-750cc motorcycle segment within India, attracting new customers.
- They can now manufacture and export motorcycles from India to other emerging countries worldwide.
What are the benefits for the Indian customers?
- Competition will be more challenging if a new company comes to the segment. Hence, the quality of all models within that segment will improve.
- Bajaj will integrate new technologies into their models, which we have seen only on premium models.
- The brand recognition of the Bajaj company will be much more premium and will surely give an edge over competitors.
- Customers will now get to own and feel premium models at much lesser price tags with little compromise in quality.
- Customers can get premium models under the 2lakh price segment, where most Indian buyers are present.
Conclusion
Business collaboration always benefits both parties, and they always try to create a win-win situation. Here, in the case of the Bajaj Triumph partnership in India, it also helps customers, which we discussed above. Most Indian customers know that collaborations are great and will benefit all. The only thing we must see here is how long this partnership will exist.
If you have any other doubts or queries, email us at bikeleague2017@gmail.com. We are always eager to help and assist you. Also, here are several social media platforms of Bikeleague India to raise your suspicions.
