Polaris-Eicher Motors Team-Up Expected

Published: Thursday, June 13, 2013, 13:01 [IST]

Polaris Industries, the U.S automobile company well known for its ATVs, and the owner of Indian and Victory Motorcycles, plans to enter India in a big way. Polaris has planned to introduce Indian and Victory brands here in the near future.

The challenges faced by international manufacturers of premium products are the usual - a weak dealer network, high duty which can double the original price of a product, local manufacturing/assembly facilities etc,. The best way to go about this is by teaming up with a local partner. Financial Express has now learned through its sources that Polaris and Eicher Motors, the owners of Royal Enfield, may form a new partnership in the two wheeler front.

We say "new partnership" because the two already have set up a joint venture, a INR 250 crore company that will develop lightweight passenger vehicles. The JV company will to make use of an unused Royal Enfield plant in Jaipur, with production expected to start in 2015.

"While nothing has been finalised yet, discussions are happening on various matters, including extending the tie-up with Eicher to include bikes as well. Polaris is searching for a local partner, which it feels is necessary to be a significant player in India in the large two-wheeler segment. For this, Eicher is the first logical choice. It is eyeing Eicher's Rajasthan plant, which has been lying unused for many years now," a FE source has informed.

Neither Eicher nor Polaris has admitted to the possibility of such a partnership of course. But such a relationship is mutually beneficial to both. If it comes to fruition Polaris will get access to Royal Enfield dealer networks for Indian and Victory Motorcycles, as well as infrastructure to assemble those motorcycles locally. Royal Enfield, on the other hand, which has plans to expand its range and enter newer international markets, will gain technological knowhow, to develop V-twin cylinder engined models for instance.

Considering all major Indian two wheeler manufacturers have an international partner, the possibility of a Polaris-Royal Enfield tie up is highly likely.