British and Indian union to tackle 400-800cc segment

Indian motorbike manufacturer, Bajaj Auto, and British brand, Triumph, will soon sign a formal contract to begin development of mid-capacity bikes for 2020.

“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,” said Rakesh Sharma, Executive Director, Bajaj Auto to MoneyControl.

The formal contract is expected to be signed before the end of September, which executives at Bajaj described as a formality.

This partnership brings together Bajaj Auto’s low-cost bike expertise and Triumph’s 117 year heritage. Bajaj currently specializes in motorcycles between 125cc to 400cc, while Triumph currently produces bikes between 800cc and 1,200cc. The partnership will help both brands create bikes with engine capacity between 400cc and 800cc.

Unlike Bajaj’s current arrangement with Austria-based KTM, in which Bajaj holds a 48% share in KTM, there will be no equity involved in the Bajaj-Triumph deal.

It is likely that, after this deal, Bajaj’s Chakan plant will produce four different brands: KTM, Husqvarna, Triumph and Bajaj. Despite the multiple brands, Bajaj has planned out the products so as not to overlap each other, with Bajaj motorcycles in entry-level segment, KTM and Husqvarna in the 200cc and above segment and Triumph in the segment above that.

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