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Home > Business > Business Headline > Report

Bajaj wants to sell all models in Philippines

Prabodh Chandrasekhar in Mumbai | June 29, 2006 13:39 IST

Bajaj Auto proposes to market its entire range of two wheelers -- including the premium bike Pulsar, executive Discover and Platina -- through Japanese company Kawasaki in the Philippines.

"We would like Kawasaki to market our entire range of bikes in the Philippines. We have already proposed the idea and is awaiting Kawasaki's reply. We would like to extend the partnership to new markets," said Sanjiv Bajaj, executive director, Bajaj Auto.

This, if happens, will be extension of the agreement signed between both the companies in February 2004 wherein Kawasaki is entitled to market only Bajaj's three models -- Wind 125, Caliber and Byk -- in the Phillipines.

During the last financial year, Kawasaki has sold 20,000 Bajaj bikes in there. "We expect to grow 25 per cent during the current year," said Bajaj.  The figure is good, considering the company had sold only 4,000 bikes in the first year of the launch.

Bajaj Auto exports the models in the form of completely knocked down kits to the Philippines, where Kawasaki Motors Phillipines Corporation assembles them at its plants.

Kawasaki has a network of more than 65 dealers with over 365 branches, through which these bikes are sold under the Bajaj brand.

The two-wheeler market there stands at about 400,000 units and is mostly dominated by Chinese and Japanese products.

It has traditionally been a market where motorcycles were used as tricycles after attaching a side car to them, as taxis.

Of late, much cheaper mopeds and step-thrus from Japan and China have started penetrating the market, with the result that two-wheelers are being used for personal use.

Kawasaki has identified Bajaj Auto's Waluj facility as a global hub for sub-250 cc range of Kawasaki Motorcycles.

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