Bajaj already has a tie-up with KTM and has helped the Austrian motorcycle manufacturer push up its global sales from 65,000 units a year to over 200,000. Photograph: (Others)
Bajaj stocks rose by 3 per cent after the announcement
India's Bajaj Auto has tied up with the UK's Triumph Motorcycles.
The joint venture will manufacture mid-capacity motorcycles for Indian and international markets.
115 years old, Triumph is one of the oldest motorcycle companies in the world.
The tie-up will allow Triumph -- using Bajaj's extensive dealer network and experience -- to break into the small motorcycle market, especially in emerging markets, while Bajaj will get access to Triumph technology and know how.
"The objective of this non-equity partnership is to deliver a range of outstanding mid-range motorcycles benefiting from the collective strengths of both the companies," Bajaj Auto Managing Director Rajiv Bajaj and Triumph Motorcycles CEO Nick Bloor said in a joint statement.
Bajaj already has a tie-up with the Austrian motorcycle manufacturer KTM.
Bajaj has a 47% stake in KTM and a third of KTM's manufacturing takes place at Bajaj's Chakan plant in Pune.
Bajaj's tie-up with KTM has helped the Austrian motorcycle manufacturer push up global sales from 65,000 units a year to over 200,000.
The Bajaj-Triumph motorcycles will also be made at Chakan.
That means there will finally be four motorcycle brands -- Bajaj, KTM, the Swedish Husqvarna (also owned by KTM), and the Bajaj-Triumph motorcycles -- manufactured at Chakan.
The Bajaj-Triumph motorcycles will finally be sold under the brand name Triumph.
Bajaj will not buy a stake in Triumph.
Bajaj Auto stocks shot up by by 3 per cent after the announcement.