Bajaj, Kawasaki eight-year-old alliance to end from April 1

Bajaj Auto and Kawasaki will end their eight-year-old alliance in India from April 1, 2017, Bajaj Auto's Probiking President Amit Nanadi said in a statement on Saturday. 

The Pune-based company is focusing on its partnership with Austrian firm KTM, under which it has been converting its Probiking outlets, where Kawasaki motorcycles were also sold, into KTM dealerships.

“Kawasaki and Bajaj have mutually arrived at an amicable decision to end their alliance in India from April 1, 2017,” Bajaj Auto President (Probiking) Amit Nandi said in a statement.

Also Read: Bajaj Auto's January sales dip 18 per cent to 2,41,917 units, motorcycles sales down 16 per cent

Consequently, Kawasaki motorcycles will be sold by India Kawasaki Motors Pvt Ltd 100 per cent subsidiary of Kawasaki Heavy Industries Japan—through its dealer network. The unit was established in India in July 2010. It will also provide after sales service, including that for past customers.

“Bajaj and Kawasaki will continue to maintain their co-operative relationship across the rest of the world for current and future businesses,” Nandi said.

Bajaj Auto formed an alliance with Kawasaki for the sale and after sales service of Kawasaki motorcycles through its Probiking network in 2009.

Also Read: Stifling of innovation by regulatory agencies will turn ‘Made in India’ into ‘Mad in India,’ says Bajaj

“We have progressively converted our Probiking network to be KTM dealerships,” Nandi said.

The Bajaj-KTM partnership, launched its first co-developed product, the 200 Duke in 2012. He said over the last 5 years, KTM achieved a CAGR of 48 per cent and sales volume in 2016-17 is estimated at 37, 000 units.

“Now the Duke & RC models are being offered in five SKU’s through the over 300 KTM dealerships in India. Going forward, Bajaj intends to focus on the KTM brand,” Nandi said.