Kawasaki has been selling and servicing its bikes up to 650cc in a tie-up with Bajaj through the KTM network.
You read it first on MotorBeam. Come April 2017, Kawasaki bikes will no longer be sold or serviced through the KTM network as Bajaj Auto and the Japanese automaker have broken ties of sales and service. Kawasaki will continue to use the Bajaj facility in Akurdi to assemble motorcycles up to 650cc.
While the reason for this break in ties cannot be ascertained at this moment, we feel it could be a two way decision. Kawasaki has been setting up its own dealer network through which it retails its CBU models and through the same it would sell its CKD motorbikes as well. The other reason could be the competition Kawasaki bikes face at KTM outlets from the better priced orange machines.
Bajaj could have also taken this decision as the money they make on a sale of a KTM motorcycle is much more than what they do on a more expensive Kawasaki. With KTM planning to expand its India range in the near future with the launch of the Duke 790, Adventure 390 and RC 790, they need more showroom space for sure.
What does this mean for the potential buyer? Kawasaki outlets for bikes under 650cc went from 160 to under 10. The locally assembled Kawasaki bikes could become cheaper as Bajaj will no longer take any profit on sale. Most importantly, Kawasaki will have to invest heavily in expanding its dealership network in India if it wants to compete with its main rival Triumph.
Bajaj Kawasaki Break Ties
– Kawasaki will sell its bikes through its own network
– KTM service centres will no longer service locally assembled Kwackers
– Kawasaki will continue to use Bajaj Auto’s facility in Akurdi
– Bikes like the Ninja 300 could become cheaper