Bajaj-Kawasaki may break partnership in sales and service; the Japanese brand is reported to sell its products through own network from April 2017
Bajaj Auto and Kawasaki India have broken their partnership for sales and service in India according to reports. From April 2017 Kawasaki bikes won’t be sold or serviced through KTM network in the country, as the company has broken its ties with Bajaj. Instead the Japanese bike-maker will sell its products through its own network. But Kawasaki will use Bajaj Auto’s Akurdi plant to assemble its bikes.
Kawasaki has been selling and servicing its bikes up to 650 cc through the KTM network across the country. Presently the company has its own network in the domestic market, which only sells the bikes which have been imported as CBU and that network will be used to sell the CKD units as well from April next year.
Also read: India-Bound Kawasaki Versys X 300 Revealed at EICMA
The reason behind this decision is not clear yet. Also it is not confirmed, which company took the first step to break the partnership. It seems that Kawasaki feels its bikes are getting tough competition from KTM bikes, with which Kawasaki bikes share same showroom space. The decision could be Bajaj Auto’s as well, as the company makes more profit from sell of KTM bikes than much more expensive Kawasaki models.
This decision certainly has its positive effect as well. As Kawasaki won’t need to pay any share of profit to Bajaj Auto anymore from April 2017, its bikes could come much cheaper than now. Expect the models like Kawasaki Ninja 300 to come significantly cheaper, as the company will surely want to keep pricing competitive against it rivals.
Also read: 2017 Kawasaki Z650 Debuts at EICMA 2016
Kawasaki presently sells 13 bikes in domestic market ranging between 110cc and 1000cc. Pricing of these bikes ranges between Rs. 2.5 lakhs and Rs. 29 lakhs. The company is also preparing to launch some new models in the country. The Versys X 300 displayed at EICMA 2016 is expected to launch in India in mid 2017.
Source: Motorbeam