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Decision to End Alliance With Kawasaki Won't Impact Business: Bajaj

Sales of Kawasaki bikes in 2015-16 stood at 867 units as against total sales of 38,93,581 units by Bajaj that year.

PTI

Updated:March 28, 2017, 6:17 PM IST
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Decision to End Alliance With Kawasaki Won't Impact Business: Bajaj
Image used for representative purpose. (Photo: Reuters)
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Bajaj Auto said its decision to end the decade-long alliance with Japan's Kawasaki for sales and services in India would not have an adverse impact on the overall performance of the company.

"The closure of tie-up does not have any impact whatsoever on the overall performance of the company nor do we anticipate this to have any impact on the stock price of the company," the two-wheeler major said in a regulatory filing.

The Pune-based company said that as part of the tie-up with Kawasaki, which commenced in 2009, bikes in the range of 250cc and 650cc were sourced from Japan for sales in India.

"Being in the high priced bike segment, the sales have been not significant for many years now," the company said.

Sales of Kawasaki bikes in 2015-16 stood at 867 units as against total sales of 38,93,581 units by the auto firm that year. Similarly, sales in 2016-17 up to February 2017 through such a tie-up has been small at 642 units, Bajaj Auto said.

Last week, Bajaj Auto agreed with Japan's Kawasaki to end their decade-old alliance for sales and services in India from next month. Consequently, Kawasaki motorcycles will be sold by India Kawasaki Motors Pvt Ltd – 100 percent subsidiary of Kawasaki Heavy Industries Japan – through its dealer network. The unit was established in India in July 2010.

It will also provide after sales service, including that for past customers.

Bajaj is focusing on its partnership with Austrian firm KTM, under which it has been converting its Probiking outlets, where Kawasaki motorcycles were also sold, into KTM dealerships.

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