Nov 7, 2007

8 Bajaj Auto spreads its wings.. Joins hands with KTM and Renault

Bajaj Auto enters into association with KTM and Renault..

In what probably is one of the big news for the Indian two wheeler sector, the country's second largest 2 wheeler maker, Bajaj Auto has joined hand with KTM, an Austrian brand famous for its off road/moto cross bikes.

Bajaj Auto has also entered into an agreement with the French Auto maker Renault to co develop a $2,500-3000 car for India..

Bajaj Renault

Carlos Ghosn with Rajiv Bajaj

Recently Renault President and CEO, Carlos Ghosn visited the Chakan plant of Bajaj..

Read more about it here, here and here..

Bajaj-KTM Alliance:

Lately there has been rumours about Bajaj trying to buy into European brands viz. Ducati and Triumph. Meanwhile here is some confirmed news about Bajaj Auto actually buying 14.5% stake in the famous Eurpoean Brand KTM, for Rs 300cr.

A 250 cc bike by KTM

According to news reports: Bajaj Auto Ltd has announced wide-ranging co-operation with KTM Power Sports AG. Which includes..

    Development of engine and vehicle platforms: The KTM Group will provide the know-how for the joint development of high-efficient water- cooled 4-stroke engines (125-ccm and 250-ccm).

    KTM will use these engines for its street motorcycles in the new street entry segment. The joint developments will also be available as basis for Bajaj-products.

    This arrangement will see Bajaj Auto and KTM working together to 3 -4 models in the 125-250 cc categories. 20,000 units of the bikes co-developed by bajaj and KTM will initially be exported to Europe and will be rolled out in the first half of 2010.

    The alliance will not only enable Bajaj to take over the distribution of KTM products in India and South East Asia, it will also enable the Indian two wheeler major to access the European market through KTM

Read more about it here, here and here.

KTM has strong brand presence in Europe and United States. It offers more than 23 motorcycles, ranging in engine size from 50cc to 950 cc and is the largest non-Japanese off road motorcycle manufacturer in the world.

Like Bajaj Auto's future plans for building a four wheeler, KTM has also recently developed a sporty four wheeler.. called the X-Bow.



One look at the KTM X-Bow and its obvious that the KTM brand shines through even though is a four wheeler.. and in fact it goes to reinforces the KTM brand. But the X-Bow at around $50K-$55K is a costly toy.

Maybe Bajaj should take a leaf from KTM when it decides to launch its four wheeler (with Renault). The Bajaj-Renault four wheeler need not be as expensive as the KTM X-Bow.. but the offering must reflect the spirit/essence of the Bajaj brand.

Instead of trying to outdo the Maruti 800 or the 1 lakh car from Tata, a Bajaj four wheeler which embodies the spirit of its most famous brand "the Pulsar", would be just great..!!

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This is to remind that the Views or Opinions in the blog are entirely mine unless explicitly stated. The Views and Opinions published in this blog should in no way be related to any other person or organization associated -- directly or indirectly -- with me.


Cé$âr said...

God! Bajaj has done it this time!! They have the firepower to take on Japanese biggies when they try to establish their high cap bikes in India!!

Gr8 news. KTM brings out exciting bikes and it'll be very very interesting to c what they have in store for Indians.

I'll buy their first bike in India.. no doubt. (provided it is above 350cc, twin cylender hehe) :D

Payeng said...


this sure is exciting news.. lets see whats in store for the near future..

All eyes now on Jan Auto Expo 2008.

Johnny Gaddar said...


This might be wrong but isnt this deal for a car? I dont really understand why its on a 2 wheeler blog. But I think everyone is hoping for bike to be developed, even though Renault manufactures cars.

Payeng said...

Johnny bhai..

I just had to break the news.. Yes, Renault alliance is for making a 4 wheeler.

But more interesting is the KTM alliance.

Johnny Gaddar said...

Payeng you're right its interesting. I think it depends on how the two companies deal with the car, it would be the outcome of the matter. Not to mention Bajaj has some small ownership on a KTM.

The only negative point is that Indian motorcycle market is heavily built upon a lot of a good companies. Bajaj would not be competiting with rivals but itself and losing itself share and profit. But it also means that companies may start bringing in better cycles on the road and better investment on cycles development through joint venture.

Anyway my 2 paise on this.

Johnny Gaddar said...

Payeng this maybe a little late but...

Payeng said...

thanks again Johnny..

Payeng said...

thanks again Johnny..

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