After several discussions and considerations, Bajaj Auto and Triumph Motorcycles are almost ready to sign a formal pact to develop mid-capacity bikes, reports Moneycontrol. The two companies are likely to sign a pact by Q3 of FY2020 (i.e. October to December 2019).
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The report further adds that the two companies have started a dialogue on manufacturing and research and development. Speaking to the business website, Rakesh Sharma, Executive Director, Bajaj Auto, said:
All the principles of engagement (between Bajaj Auto and Triumph) have all been satisfactorily and amicably resolved. These are now embedded in a formal contract, which is in its last stages of preparation. But even as this is happening, there is a good degree of discussion on the manufacturing and R&D side already... It could spill over (to Q3), but there is nothing left to debate in it. It is just a matter of transcribing the principles into a (formal) language.
It has been two years since Bajaj Auto and Triumph Motorcycles announced their objective to build mid-capacity bikes for the Indian as well as global markets. Apart from India, the alliance would target markets such as Africa, Latin America and South-East Asia. Bajaj Auto and Triumph Motorcycles had formed a non-equity partnership in August 2017, but they are yet to sign a formal agreement.
The motorcycles would be designed and developed by Triumph Motorcycles, while Bajaj Auto would handle the manufacturing. The bikes would be produced at Bajaj Auto’s Chakan plant in Pune, India. Local manufacturing will allow the jointly developed products to retail at competitive prices. The business website adds that the Anglo-Indian partnership will target models in the 400-800 cc segment, and address the demand for leisure riding. Thus, the upcoming Bajaj-Triumph bikes will compete with the likes of Royal Enfield 650 Twins and Harley-Davidson Street series, among other rivals.
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While Bajaj Auto and Triumph Motorcycles are working on their new, jointly developed range of products, Harley-Davidson has announced its plans to venture into the sub-500 cc segment. The American cruiser brand has joined hands with China’s Zhejiang Qianjiang Motorcycle to make a new 338 cc, entry-level bike. The vehicle will be available in China by the end of next year before it is rolled out into other Asian markets.
[Source: Moneycontrol.com]
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