Partnership between Bajaj Auto & Triumph Motorcycles will Tap into Market for Mid-segment Motorcycles
The U.K.-based Triumph Motorcycles, and India’s Bajaj Auto Ltd. have recently made an announcement of a global partnership for making deeper inroads into middleweight motorcycle market worldwide. This implies motorcycles with engine capacities between 250cc and 600cc. Under this partnership’s terms, these two industries will distribute as well as develop the motorcycles, and Bajaj will take the responsibility of manufacturing them.
Partnership will Help Bajaj Auto in Competing with Eicher Motor Ltd.’s Royal Enfield
This partnership will help Bajaj in competing with the Royal Enfield motorcycles of Eicher Motor Ltd., which are already popular in India, and are increasingly gaining popularity across the globe. For Triumph Motorcycles, this partnership is considered as an opportunity for offering a motorcycle in the field in which it doesn’t operate at present, at low cost. Royal Enfield manufactures 350cc and 500cc motorcycles, along with one 535cc. Bajaj manufactures just one in this capacity range i.e. Dominar which is 375cc, while Triumph manufactures none. In India, which is the largest market for two-wheeler globally, buyers have been demanding for bigger motorcycles. For example - in 2016, 651,107 motorcycles were sold by Royal Enfield in India, which represented 30% hike compared to sales in 2015.
This partnership is expected to help the two companies in leveraging each other’s strengths, which include Triumph Motorcycle’s position as the premium luxury brand with a global reach, and Manufacturing as well as engineering capabilities of Bajaj Auto Ltd. Bajaj Auto Ltd., led by Rajeev Bajaj, aims in becoming a global motorcycle producer, and this partnership is a step forward in that direction. 48% shares of KTM AG, Australia, is held by Bajaj Auto. The decade-old partnership between Bajaj Auto and KTM AG has encouraged these industries in expanding scope of their agreement for including Husquvarna Motorcycles, manufactured by a KTM affiliate.
Partnership Aims to Develop New Segment of Motorcycles between Luxury & Commuter Bikes
Vimal Sumbly, managing director of Triumph Motorcycles India Pvt. Ltd., stated that this partnership aims at developing an array of mid-segment motorcycles. The motorcycles, which will completely be a new development, will create new segment of motorcycles between luxury and commuter bikes that is untapped currently. Sumbly also stated that consumers across the globe as well as in India are seeking premium luxury motorcycle brand.
The market for mid-segment motorcycles, currently being targeted by the duo, has been expanding, and sales of such models exceeded 821,000 units in 2016, from 200,000 units in 2011. Another partnership, between BMW AG and TVS Motor Co., is aiming to develop mid-segment motorcycles for sale in India as well as worldwide. S. Ravikumar, president of business development and assurance at Bajaj Auto, stated that the strategic intent within partnership with Triumph is provision of opportunity to both organizations for tapping into new market segments. However, Triumph Motorcycles will continue to sell high-end motorcycles (above 750cc) independently.
With these partnerships the motorcycle market is witnessing a gradual change of phase. According to a latest research, the global motorcycle market will showcase a steady expansion in the foreseeable future.
Most popular reports
- Truck and Bus Radial (TBR) Tire Market Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2020 to 2030
- Automotive Sunroof Motor Market Forecast, Trend Analysis & Competition Tracking - Global Review 2020 to 2030
- Automotive Seatbelt Market Forecast, Trend Analysis & Competition Tracking - Global Review 2020 to 2030