The KTM allianceRajiv Bajaj has repeatedly stated that KTM is progressing to become the largest premium motorcycle brand in the world, thanks to the low pricing bandwidth achieved by manufacturing sub-400cc models in India.
The objective of this "non-equity partnership is to deliver a range of outstanding mid-capacity motorcycles benefiting from the collective strengths of both companies", it said. Triumph and Bajaj will mainly sell these in India.
Triumph's full statement this morning said: 'Triumph motorcycles and Bajaj are pleased to announce their global partnership.
Bajaj would then be able to produce high-capacity motorcycles taking a leaf out of Triumph's decades of experience in the segment.More news: Disturbance resolved after Arkansas inmates take control of part of prison
As recently as 2013 Triumph were developing their own 250cc models, which were originally scheduled to be launched in 2015 before Triumph halted development of the models.
Bajaj Auto already has an alliance with Austrian bike maker KTM where it holds a 47 per cent stake.
Ten years ago their market capitalisation was just 12% of Bajaj and 6% of Hero but Eicher overtook them both on 31 July. The move will also help the British manufacturer to set foot in many emerging markets where higher capacity bikes are not favourite.
Bajaj Auto has joined hands with Triumph Motorcycles of the UK. The first fruit of this alliance is expected to come in the form of a mid-capacity motorcycle.
However, industry experts say that this move will benefit the expanding segment and its customers more than jeopardising any rival's (existing and planned) position in the market. Post the AGM, the company's CFO Kevin D'sa had also said, "There is an alliance around the corner".
There's not been much info out of the West Midlands so far, but we'll keep updating if we hear anything from the good souls of Hinckley. Bajaj has grown from strength to strength on the back of the Pulsar range while Triumph is known for its big body cruisers. The cost-efficiencies at Chakan can also help Triumph ship out bikes to developed countries in the West.