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Bajaj, KTM and Kawasaki consider three-way alliance

Being India's second largest and the world's 4th largest bike maker is just not enough for Bajaj Auto chief Rajiv Bajaj. He now wants more for the company and for this he has brought his two allies Austria's sports bike maker KTM and Japan’s Kawasaki together to create a potential powerhouse partnership.

NDTV has learnt that Bajaj has entered a three-way discussion with KTM and Kawasaki.

The talks focus on forming a global motorcycle alliance which would combine the R&D and global distribution strengths of the three companies.

"KTM is keen on manufacturing cost structure learnings from Kawasaki and we are keen to broaden the existing Bajaj-Kawasaki partnership too," Rajiv Bajaj, MD, Bajaj Auto said.

Bajaj already uses Kawasaki network in SE Asia, Latin America. In fact, the company’s own brand-bikes are the market leader in countries like Philippines and Colombia while being sold through the Japanese company’s network.

Bajaj of course also holds 31.72 per cent stake in KTM which will help Kawasaki leverage KTM's technology and marketing models. But there will be no investments or stake swaps involved in the proposed alliance.

"No immediate equity participation likely by Bajaj in Kawasaki or vice versa," Rajiv Bajaj, MD, Bajaj Auto said.

Sharing product development as well as marketing strengths could result in huge cost savings for all three players while KTM and Kawasaki benefit from Bajaj's low-cost manufacturing model.

Moreover, it is the new engine and vehicle platforms that Bajaj is looking forward to. A final decision on the alliance is expected by the year end.


Source: Bajaj, KTM and Kawasaki consider three-way alliance - NDTV Profit

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sunilg

news approved.

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jd666

hehe.. its gonna be an awesome threesome to watch!!! rotfl!!

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srini

something to look fwd to...

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abhis3k

Seems like a great call. Looking forward to the results. They are sure going to be awesome!!

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harikeshpk

it will create the biggest 2 wheeler company /alliance in the world and its a matter of time bajaj takes the no -1 position in the 2 wheeler market. wait and watch.

young CEO's have killer instincts.

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RanjithMN

I hope Bajaj actually learns a thing or 2 from these biggies and actually make use of it on their products!
AFAIK they haven't done anything of that sort right?

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i have alwaya loved threesomes lol

rider_rock

let's see what is the end result
ha ha right

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NitinGirish

I saw this news bit on NDTV Profit last night (or was it day before) and I quite like the way the younger Bajaj thinks. If Bajaj can leverage the design/technical expertise of KTM/Kawa & combine with their low cost manufacturing prowess we could perhaps see something interesting here.

The fact that KTM & Kawasaki do not operate in the same segment makes this possible. But still Bajaj will have to act as a mediator between the two and walk on a tight rope. If at all KTM & Kawa do NOT end up being suspcious of each other and this alliance actually results in a contemporary 'fun' product then we have a good reason to appreaciate Bajaj,... Finally!

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