Bajaj Auto to enter ASEAN markets with Kawasaki tie-up

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(added few years ago!)


Bajaj Auto has been clear about its growth path spurred by the strategic partnerships with several major bike makers in the international arena and now the compani is building on its successful marketing tie-up with Kawasaki in the Philippines, Bajaj Auto plans to replicate the model in other ASEAN countries and Brazil. The boards of both companies approved this tie-up last week.
Bajaj and Kawasaki have garnered a 45 percent market share in the Philippines through this tie-up which began in 2004. Bajaj will replicate the Philippines business model in Indonesia by mid 2013. In this model, Bajaj Auto develops and builds bikes in India and ships them to Kawasaki, who further fine-tunes them to suit local regulations. The bikes are then taken to the markets under the Kawasaki-Bajaj name.
At a broader level, this also results into better capacity utilisation for both companies. For Bajaj, it is utilisation of production capacity while for Kawasaki it is distribution capacity. Last year, Bajaj Auto exported 1.2 million motorcycles and has a capacity to produce four million annually. Export revenues contribute one-third of Bajaj Auto's total revenues.
Tags : Bajaj Auto, ASEAN, Kawasaki, Brazil, 2004, 2013, India, Philippines

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(added few years ago!) / 1545 views
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