Two wheeler manufacturer Bajaj Auto is on the cusp of making a big move in the premium motorcycle segment with the transfer of operations of UK based automaker Triumph Motorcycles India sales and marketing operations. The two companies will jointly develop and launch mid-sized Triumph motorcycles in India in 2023.

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Sources have told CNBC-TV18 that the bikes will see a global launch in UK towards the end of June 2023 followed by sales in India from July.

Triumph currently has 15 dealerships in India and Bajaj Auto is looking to expand the existing dealerships from 15 to 120 in the next 2 years. Bajaj Auto will now have 5 exclusive retail channels including KTM, Bajaj motorcycles, Chetak electric and three wheelers.

Bajaj Auto has built a strong portfolio of premium motorcycles in the recent past. It is attacking white spaces through premium cruisers with the Triumph launch in mid 2023 and Electric Vehicles, which will help in improving volumes, mix and margins.

The key to the game, though is pricing of the Triumph bikes. As the buzz increases and the launch date gets closer, testing has begun. As of now, two bikes have been spotted testing – one is a Scrambler, and the other one is a modern retro motorcycle, which is likely to be in the 400cc segment.

The first product expected to be launched is the Triumph-Bajaj 400cc, likely to be priced around Rs 2.5- 3 lakh (ex-showroom). This bike will go up against the likes of Honda CB300R, BMW G310 R and Zontes GK350.

The street is bullish on the stock due to this impending launch. Morgan Stanley says in the bull case, Triumph can add Rs397 to Bajaj’s value, which is a 10 percent upside to current market price. Morgan also expects Triumph to reach 30 percent market share in the premium cruiser category by FY2026.

Shares of Bajaj Auto are trading 2.4 percent higher at Rs 4,158.75, and are at a 52-week high.

(Edited by : Vahishta Unwalla)

First Published:Apr 11, 2023 12:20 PM IST