While we were speculating a possible takeover of Ducati by Bajaj KTM only a few days back, an official release from both Bajaj and Triumph shook our inboxes and our brains in one felling swoop. UK based Triumph Motorcycles and Indian Bajaj Auto have officially announced a new global partnership, wherein the two bike makers will leverage their respective strengths to create and market a new breed of motorcycles. While the finer details about the joint venture are not known yet, the official communication does create a broad outline for what all the new partnership will encompass.
Here’s the text of the official release
TRIUMPH MOTORCYCLES UK AND BAJAJ AUTO INDIA ANNOUNCE A NEW PARTNERSHIP
Triumph motorcycles and Bajaj are pleased to announce their global partnership.
The objective of this non-equity partnership is to deliver a range of outstanding mid—capacity motorcycles benefitting from the collective strengths of both companies.
We hope to bring to bear upon global markets the individual strengths of the partners including brand position & perception, design & development technology, quality & cost competitiveness & worldwide distribution.
This new global partnership will enable Triumph to significantly expand its global reach by entering new higher volume market segments, especially within the emerging markets across the world.
Bajaj will gain access to the iconic Triumph brand, and its great motorcycles, enabling it to offer a wider range of motorcycles within its domestic market and other international markets.
Triumph and Bajaj are excited by the opportunities of this partnership and the prospect of entering new market segments, thereby reaching a whole new group of motorcyclists across the world.
We will provide further details in due course
It would be too early to have a definitive view of the exact nature of this partnership at this moment. However, as outlined in the text, Bajaj Auto will help Triumph by expanding its market to high growth countries like India. The low-cost bike maker has strong presence in countries like Nigeria, Columbia, Bangladesh, Philippines, Sri Lanka, Uganda, Central America, Egypt and Peru. Triumph, on the other hand, is looking optimistically at expanding its footprint in a lot more markets which aren’t yet ready for premium motorcycles.
This is where the partnership has a lot of potential. While Bajaj will help Triumph with its network, reach and accessible positioning, helping it expand its market, it will benefit from the UK based bike maker’s strong brand and expertise in high-end motorcycles.
Expect the two brands to come up with a new breed of motorcycles. While details are not out, we expect these motorcycles to be sub-600cc machines with robust, but basic technology and reasonable pricing. If our reading is correct, these motorcycles should be priced in the INR sub 5-lakh category, which is a segment where both brands don’t have a presence, thus offering a chance for growth to both the makers. The emergence of a new sub-brand which is positioned in the INR 3 – 5 lakh category cannot be ruled out entirely either.
Bajaj Auto already has an alliance with Austrian bike maker KTM where it holds a 47 per cent stake. For the Triumph alliance, however, Bajaj Auto is not picking up any stake UK based brand.
We will dig into the story and get back to you with more insights shortly