Bajaj, KTM and Kawasaki to form a tripartite alliance

Bajaj Auto is not self content with its status as the country’s second largest and the world’s fourth largest automobile manufacturer. The temptation to reach the peak and the hunger to attain the supremacy is with the company chairman Rajiv Bajaj, which resulted with the alliance blooming among Bajaj, KTM and Kawasaki. The alliance would make a motorcycle on a global platform with the partners sharpening the R&D wing and facilities. Of the partners, KTM is an integral unit for cost effective means to be derived from Kawasaki which will be reflected on the alliance, he said. However, Bajaj is in an off the record JV with Kawasaki for its SE Asian and Latin America operations.

Bajaj has set afoot its brand image in the markets of Colombia and Philippines on its own and Kawasaki gives the back up for the Japanese market. In the JV with KTM, Bajaj shares 31.72% for taking advantage of the Japanese company’s technical know-how and marketing the roducts in Japan. All these deals are without involvement of money stake in the ensuing tripartite alliance. He clarified that there won’t be any instant equity share among the allies except a common platform for product ranges and marketing to yield cost profit. Bajaj will boost this benefit to other partners. Bajaj for its part, is seeking new platforms for engine and design which the other two players may extend.

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