Bajaj Auto and Kawasaki Heavy Industries, both signed an agreement under which, Bajaj Auto can sell motorcycles in Indonesia through latter’s distribution network as co-branded products. The Indian motorcycle king Bajaj Auto and the Japanese motorcycle giant Kawasaki, have had a long and fruitful partnership traversing many markets including India. This alliance looks like a step to continue the success enjoyed by Bajaj and Kawasaki in the Philippines market. The Indonesian two wheeler market is the third largest market in the world, and both Bajaj and Kawasaki will fruit from this deal.
Bajaj Auto board conferred its consent to the deal this morning, while Kawasaki Heavy Industries’ Board had already agreed to it on September 12. Both Honda and TVS Motors have a very substantial hold in the Indonesian two-wheeler market with the former being the largest player in Indonesia. To commence the fight, the first product under Bajaj-Kawasaki alliance will be the recently introduced Bajaj Pulsar 200 NS and the shipments to Indonesia will begin in the middle of 2013. In due course of time, Bajaj Auto will introduce many more motorcycles in Indonesia, including the KTM Duke range of street fighters.
This Bajaj and Kawasaki alliance has seen a similar conglomerate in the Philippines market for the last many years, and together command 45 percent market share here in India. The Indian company, Bajaj anticipates to prolong such an arrangement to another six to seven markets globally, including Brazil, in the next three-five years’ time. Exports have been delayed as Bajaj Auto wants to meet the local demand for the Pulsar 200 NS. Bajaj Auto plans to increase exports in the coming years and wants 50% of total sales from overseas markets.