Bajaj Auto, the India's second-largest motorcycle OEM, is cobbling together an alliance with KTM and Kawasaki for bike production.
The three companies are discussing the matter, which would lead to cost-effective manufacturing programs for engines, platforms and components, and also a global distribution and marketing network, according to the Business Standard of India.
A deal would let the OEMs share platforms to develop products suitable to their brands and strategies, a tactic common among auto and SUV makers.
Bajaj already owns 38 percent of KTM and has been slowling building its stake in the Austrian company while they collaborate on high-performance engines. Kawi would be able to get in on the results under a partnership. At the same time, the partners could use each other’s dealer networks to penetrate new markets.
Posted by Holly Wagner