This has been the most anticipated merger talk that was making rounds since the very successful Bajaj-KTM combo, that bought the humble Austrian manufacturer into limelight. This is also what caught the attention of many other manufacturers who were eyeing to capture the middle-weight segment. That brings us to the buzz doing rounds since 2017. We now have concrete news on when all of this is going to unravel.
The Bajaj-triumph deal is confirmed to take place on January 24, 2020, and the possibilities of the outcome is going to be mind-blowing. We say this because the merger would be gainful for both the manufacturers and help them tread unknown territories with confidence.
This alliance would help both the manufacturers equally in expanding their footprint in developing nations which includes various South Asian countries including India along with South American and Africa. Triumph has been eyeing to make their mark in the lightweight category but were not able to do so as their portfolio started very steep.
Now, with the upsizing of engines, the most affordable Street Twin comes in at Rs. 8 lakhs and up. That is not financially pleasing, at least for the developing nations and that’s where this merger comes to the rescue. It will help Triumph cut drastically on the production costs as this brainchild will be manufactured in Bajaj’s Chakan plant. This will open up a gateway for localized production of various Triumph products as well in the future.
Bajaj will equally gain from it and will be the ignition key for their ambitious idea of taking on the Royal Enfields that has been in the pipeline for a long time now. There are rumours of the first motorcycle from this merger being a middleweight cruiser that might be based off the Bajaj Avenger or the Dominar. Triumph was also spied with a compact looking test mule doing rounds in its home ground. So as the cards are aligning here, this is going to be a non-equity deal but at the same time will also be royalty-based which will allow both the manufacturers to sustain rights.
Middle-weight is the segment that both are eyeing for as this is a barren land as of now. There are no prominent players due to higher pricing which plagues this segment right now. It is the perfect playground with no competitors now and the motorcycles to come out of this merger are more likely to be in the 300-500cc bracket.
Triumph can drastically lower its pricing with the help of localised sourcing of components and assembly. This will give riders easier access to these beautiful British machines that have been trying to make their mark for a long time now.
Bajaj, on the other hand, will finally get a chance to take on the big daddy of cruisers in India, Royal Enfield which has established full control on the entry-level cruisers and have thus maintained its hierarchy on this segment. This will allow Bajaj to offer premium power plants for a much accessible price point.
This is a stretched-out statement at this moment as we aren’t sure of the final nature of the product that is going to unravel from this partnership. But it sure will create a commotion as Triumph’s expertise in the middle-weight category and Bajaj’s extensive network will be a very fruitful combination. We will have the final official drafting of the deal and its timeline on the 24th of January. We will hopefully get insight on what we would be surprised on in a week and taking into consideration Bajaj’s earlier mergers, we can expect the products of this one to see the light of day soon, as soon as late 2021. Triumph will thus join the list with KTM and Husqvarna in Bajaj’s partnership timeline.