Bajaj Triumph Collaboration On Course Despite Delays: Triumph Begins Testing Prototype

Triumph Motorcycles has issued a statement saying that delays in signing a formal partnership between Bajaj Auto and Triumph Motorcycles has had no impact on the product development front.

Bajaj Triumph Collaboration On Course Despite Delays: Triumph Begins Testing Prototype

According to the Economic Times Auto, the British manufacturer said they have started ‘early-testing' prototype models under the collaboration. In addition, Bajaj Auto's top-gun, Mr Rajiv Bajaj was in the United Kingdom last month to access product development.

Bajaj Triumph Collaboration On Course Despite Delays: Triumph Begins Testing Prototype

Bajaj Auto and Triumph Motorcycles had announced plans to develop vehicles during the August 2017, but the companies still have to sign a formal agreement.

Bajaj Triumph Collaboration On Course Despite Delays: Triumph Begins Testing Prototype

The agreement between Bajaj Auto and Triumph Motorcycles is said to be royalty-based wherein both the companies retain intellectual property rights, and will not hold shares of either partner.

Bajaj Triumph Collaboration On Course Despite Delays: Triumph Begins Testing Prototype

The Bajaj Triumph alliance will develop and build mid-weight motorcycles on a new engine platform. The engine will be manufactured by Bajaj and marketed by Triumph in India.

Bajaj Triumph Collaboration On Course Despite Delays: Triumph Begins Testing Prototype

The new motorcycles will compete primarily with Royal Enfield, which dominates the 300cc to 500 cc segment in India. Triumph will sell these made in India motorcycles across all countries it has a sales network in, and Bajaj will sell them in countries where it runs operations and Triumph does not.

Bajaj Triumph Collaboration On Course Despite Delays: Triumph Begins Testing Prototype

Triumph had earlier planned to manufacture and launch a 250cc motorcycle in the Indian market, but was unable to get the economics right. Bajaj Auto on the other hand has worked out its economics. Triumph expects to hit the jackpot with the economies and supplier-base of Bajaj Auto.

Bajaj Triumph Collaboration On Course Despite Delays: Triumph Begins Testing Prototype

Triumph feels that that development costs would be marginally different if they developed middle-weight motorcycles themselves, however the real advantage with this collaboration is the economies of the scale Bajaj has.

Bajaj Triumph Collaboration On Course Despite Delays: Triumph Begins Testing Prototype

Thoughts About The Bajaj Triumph Alliance

This is great for both companies. Triumph gains from Bajaj's vast network of suppliers and logistics network, and Bajaj gains from Triumph's technology, and adds an additional revenue stream. We'd like the lads at both companies to know that we're not very interested in what the agreement is, and when they sign it. Show us the bikes! So, will the bikes retail under the Bajaj banner or the Triumph banner? (We're beginning to think they might do a Toyota Suzuki thing).


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Article Published On: Monday, November 11, 2019, 15:46 [IST]
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