A Tri-Alliance Bajaj-KTM-Kawasaki Contemplates

By By: Vicky.in

Bajaj Auto, the second largest two-wheeler maker in the country, is having a three-way discussion with its partners KTM of Austria and Kawaski of Japan. Bajaj has been selling its bikes in Philippines and Colombia and other regions of South East Asia and Latin America. Bajaj also holds 31.72 percent stake in KTM, the Austrian bike manufacturer.

As evident from Bajaj's interest in the two companies, Rajiv Bajaj, MD of Bajaj Auto has brought together KTM and Kawasaki to build a powerhouse partnership. He said that KTM is keen on manufacturing cost structure learning from Kawasaki and Bajaj is keen to broaden the existing Bajaj-Kawasaki partnership too. Although Rahul denied immediate equity participation likely by Bajaj in Kawasaki or vice versa.

Kawasaki is an expertise in wide range of bikes including cruiser. KTM is known for its dirt bikes and street racers. Now, Bajaj, being a strong leader in low cost production bikes, will be keen on learning the technologies and may also share platforms with KTM and Kawasaki, which could also result in huge cost savings. A final decision on this alliance is expected to be taken by end of the current year.

Article Published On: Thursday, September 2, 2010, 10:19 [IST]
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