Bajaj’s Ducati or Bajaj Triumph:

Bajaj Auto ltd is looking for a big-ticket acquisition in the European motorcycle market to increase its product line-up of high-end bikes. Bajaj is targeting two cult bike companies, Italy-based Ducati Motor Holding SpA and Triumph Motorcycles Ltd of the UK. Bajaj Auto has been looking for an appropriate acquisition or an alliance to boost its engineering and product development to expand a product range currently limited to 220cc. A big-ticket European brand like Ducati or Triumph will not only give Bajaj products in the premium lifestyle range in India but also a vehicle to drive export growth in the developed markets. Bajaj Auto has been getting increasingly aggressive with its bike retail channel Probiking and Bajaj has been saying that it will crank out more products to stock its Probiking shelves. Bajaj’s reported talks earlier with Japanese major Yamaha were also focused on technology-sharing and expertise for bigger bikes while offering engineering and manufacturing expertise for smaller motorcycles. Japanese bike maker Yamaha had first initiated talks with Bajaj in November last year. Yamaha’s global team led by Yamaha Japan president Takashi Kajikawa had visited Bajaj’s facilities and had talks with the companies. The two bike majors might join hands for making co-badged bikes for the higher segments both for the domestic and export markets. Bajaj is also considering entering the segment under its existing collaboration with Kawasaki.

Ducati is a 95.4 mln euro company and all its products are in the 700cc-plus range with the brand having a formidable reputation in the MotoGP series. Triumph is a 165.0 mln stg ($336 million) company and has cruisers, urban sports bikes and other lifestyle products in its range including apparel and accessories.

Bajaj – Renault $3000 car:

The Tata Rs 1 lakh car project has triggered off a lot of excitement both among local auto majors as well as global biggies. Carlos Ghoshn is very keen on building a rival to proposed Tata’s 1 lakh car. Last month, he announced that the Nissan-Renault combine would develop a $3000 car using India’s “frugal engineering expertise”. If produced the car will be the Renault’s big pitch for global volumes after the Logan. But contrary to Renault – Nissan its Indian partner M&M is not interested in the $3000 car project as its long-term strategy is to be a global player in the SUV market. Hence Renault – Nissan has to find an Indian partner for its planned small car. Bajaj Auto is planning superior technology and multiple options to foray into the passenger car segment. So, is that what Renault-Nissan is looking for in its partner for its budget car.

Already India’s robust two and three wheeler manufacturer Bajaj is experimenting with the concept of a small car. Bajaj is also developing a six or eight seater vehicle that could compete with Maruti’s Omni van or even the more recently launched Tata’s Ace Magic. Unlike the Ace Magic or Maruti Omni, Bajaj is planning to offer both petrol and diesel engine options for its new vehicle. Interestingly, this month Bajaj created five strategic units including engineering and R&D. All these may make these two giants to produce the low cost car which will rival Tata’s 1 lakh car.