Competition

Bajaj-Triumph Partnership Set to Cause Ripples in India Two-Wheeler ABS Market

India Two-Wheeler ABS Market

Bajaj Auto is leveraging its position as a two-wheeler hegemon to invite M&A activities with technologically rich companies, a development that bodes well for India two-wheeler ABS market

Bajaj Auto Limited, the world's sixth-largest manufacturer of motorcycles and the second-largest in India, in addition being the worlds’ largest three-wheeler manufacturer, has recently announced its partnership with Triumph Motorcycles Ltd, Britain’s largest motorcycle manufacturer. Ravi Bajaj, Managing Director at Bajaj Auto, claims that the partnership represents the last missing piece in Bajaj’s global motorcycle portfolio — a premium, easy-riding brand. Experts at TechSci Research discuss the impact this development will have on the India two-wheeler ABS market.

 

Changing Contours in the India Two-Wheeler Market

 

As per TechSci Research report “India Two-Wheeler ABS Market Forecast & Opportunities, 2022”, India Two-Wheeler ABS market stood at $ 2.34 billion in 2016, and is expected to grow at a stupendous CAGR of 58.57%, in value terms, to reach $ 37.20 billion by 2022. This growth will be achievable only due growing awareness among consumers regarding vehicle safety in India, favourable government intervention in the market, rising prosperity levels which are directly linked to safety awareness and favourable legislation due to better social and economic as well as educational opportunities. Thus, the India Two-Wheeler ABS Market is set to see strong growth due to sociological and economic factors. Another important factor is the Indian government has mandated that, effective from April 1, 2018, all two-wheelers above 125cc will come with an ABS system. For two-wheelers below 125cc, manufacturers have the choice of installing either the ABS system or the combined brake system (CBS) in order to meet the mandate.

Therefore, keeping in mind the strong expected surge in India two-wheeler ABS market, Bajaj is proving to be a shrewd economic operator by tying up with a company that can provide them with the latest technologies and help Bajaj in cornering a bigger market share in the global two-wheeler market.


Bajaj Auto: Displaying a Pattern of Mergers and Acquisition


The Bajaj-Triumph partnership displays nothing more or less that what has been a very shrewd contemporary business practice being deployed by Bajaj Auto. Rajiv Bajaj himself highlighted the growing propensity towards consumption in the Indian economy, pointing out that there has been a steady shift in India from 250cc category two-wheelers to 500cc. Not only is the India two-wheeler ABS market reaping the dividends, other technologies such as fuel injection etc. will also see more activity with the aforementioned shift.

Bajaj has tried to steal a march over its rivals in this regard, with actions such as Bajaj-Kawasaki tie-up in April 2017, acquisition of a 14.5% stake in KTM Power Sports AG etc. Bajaj Auto has consistently leveraged its liquidity and market placement in the quest for technological advancement, a process that bodes well for the India two-wheeler ABS market.

 

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