Bajaj Auto , Kawasaki and KTM mulls over a three-way alliance

Seems like Bajaj Auto Chief Mr.Rajiv Bajaj is not fully content with Bajaj Auto’s image as India's Second largest and the world's 4th largest bike maker. He has now planned some more brand building for the company as a result the two allies of Bajaj namely KTM and Kawasaki have come together for creating a potential powerhouse partnership. KTM is a renowned sports bike maker of Austria while Kawasaki is one of the biggest and well known motorcycle maker from Japan. Presently Bajaj Auto is in a three-way discussion with KTM and Kawasaki. The aim of this on-going discussion is to form a global motorcycle alliance which will take the R&D and global distribution strengths of the three companies in consideration. The sharing of product development and marketing strengths could provide with the beneficial results of huge cost savings for all three players – KTM, Kawasaki and Bajaj Auto. KTM and Kawasaki will benefit from the low-cost manufacturing model of Bajaj. For the records Bajaj holds 31.72 per cent stake in KTM. This should also help Kawasaki leverage the technology and marketing models of KTM. Mr Rajiv Bajaj was quoted saying that no immediate equity participation likely by Bajaj in Kawasaki or vice versa. Rajiv Bajaj, MD, Bajaj Auto commented that KTM is keen on manufacturing cost structure learnings from Kawasaki and Bajaj Auto is keen to broaden the existing Bajaj-Kawasaki partnership too. Bajaj Auto is already using Kawasaki network in South East Asia, Latin America. In countries such as Philippines and Colombia, Bajaj is already a market leader through its brand-bikes which are being sold through the network of the Japanese company. Looks like exciting times for the Indian 2 wheeler enthusiast once this alliance comes into place.