Bajaj Auto MD Rajiv Bajaj on July 5 said the launch of Speed 400 bike in partnership with Triumph, at an ex-showroom price of Rs 2.33 lakh, offers customers the chance to realise their goals at a reasonable price.
In an exclusive interview with CNBC-TV18, Bajaj emphasised that Triumph is a high-end product that offers clients great value by combining both quality and cost.
"With Triumph we are offering affordable aspiration to customers. We are offering premium product, offering great value," Bajaj said.
It has cost about Rs 200 crore to put up the new manufacturing plant for Triumph production at Chakan in Pune, he said.
Bajaj added that the Triumph motorcycles would not have reached the ideal cost position they presently hold if they had been exclusively designed and developed by Triumph in the UK.
He clarified that there is no equity partnership between the two companies. Also, he underlined that having a common goal is a compelling reason for two partners to have a long-term business relationship.
"At this moment, there is no equity relationship. I don't think equity in itself is a necessary condition for a successful partnership. Mutuality of purpose is a far more compelling reason for two partners to stay in business," he said.
He emphasised how the 40-year partnership between Bajaj and Kawasaki has endured despite neither company owning shares in the other.
"We have an enduring 40-year partnership with Kawasaki without equity with each other. The only company that endures today is Bajaj-Kawasaki though not being in equity," Bajaj said.
Saying that the 400 CC segment is not new for them, Bajaj stressed that they have overcome the difficulty of reaching Triumph's expectations while maintaining the highest standards in terms of aesthetics and design.
"We have the highest specs we have ever been challenged to achieve in aesthetics and design that Triumph expected of us. It is remarkable to have done at the same time at a competitive cost. It is very hard to compete in a cluttered space without establishing such standards," Bajaj said.
Bajaj also said it is remarkable to have achieved this accomplishment while keeping expenses down. In the cluttered market, he said Triumph products are fiercely competitive in terms of both performance and product quality.
With Triumph, Bajaj said, the company has the chance to serve the mass premium category. He stated that of the industry's profits, Bajaj holds a 50 percent share.
"With our own brand we could address the mass premium and the space. There will be two mindsets: for the sporty mindset, there is KTM, and then there is the classy mindset, for cool riding. There is no brand in this space other than Triumph. Between Bajaj, Hero, TVS and Royal, Bajaj has a 50 percent share of the profit of the industry," said Bajaj.
According to Bajaj, the company's initial production capability allows for the monthly production of 5,000 Triumph motorcycles. It can quickly build up production volume in a matter of 3–4 months, he added. We are prepared to raise manufacturing capacity when domestic demand rises, he further said.
Bajaj claimed that the Chakan factory currently produces 20,000 KTM motorcycles a month, and in the future, the monthly manufacturing capacity for the two brands may exceed 40,000 motorcycles. He revealed that their ultimate goal is to produce 1 million motorcycles, including both KTMs and Triumphs.
"We have an initial capacity to manufacture 5,000 Triumphs a month. In 3-4 months, we can scale up the volume. Our dream is to roll out 1 million - KTMs and Triumphs included. We are on our way to realise this dream," said Bajaj.
Bajaj clarified that only Triumph's exclusive dealerships would be permitted to sell Triumph motorcycles. Within a two-month period, he said the company may establish about 100 Triumph dealerships.
"It will be exclusively through Triumph dealerships. There will be no Triumph in Bajaj dealerships or KTM dealerships. In two months' time, we will expand to about 100 Triumph dealerships," said Bajaj.
Towards the end of 2023, Bajaj revealed that there would be a special release made just for Pulsar enthusiasts. He pointed out that in the coming months, the KTM lineup would receive exciting changes.
Bajaj, while highlighting the Pulsar brand, said it was crucial in converting Bajaj from a scooter company to a motorcycle company and elevating it from a domestic player to an international favourite.
"For those who love the Pulsar, there will be a big thing with Pulsar. KTM lineup will be refreshed in the coming months. We will pay tribute to Pulsar in an amazing way hopefully by March next year," Bajaj said.
Bajaj Auto and British motorcycle brand Triumph jointly introduced the Triumph Speed 400 and Scrambler 400 X motorcycles in India on July 5. This is part of a deal the two companies established in 2017.
During the launch event, it was revealed that the Triumph Speed 400 is priced at Rs 2.33 lakh, with an inaugural price of Rs 2.23 lakh for the first 10,000 customers. The Speed 400 will be available in the market from mid-July. On the other hand, the price of the Scrambler 400 X has not yet been announced, but it is expected to be released in October this year.
A few days after Hero Motocorp's collaboration with Harley Davidson, they introduced the Harley Davidson X440 specifically for the Indian market.
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