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http://newatlas.com/indian-motorcycle-market-turmoil-triumph-bajaj/50859/How Royal Enfield became the top-selling gasoline big bike in the world  INDIA TAKES OVER ALL OF MOTORCYCLING'S MAJOR OLDER NON-JAPANESE BRANDSRead the article, it shows that Royal Enfield has become the largest numerical gas fueled bike maker in the world by a sizable margin. Chinese bikes are dropping off dramatically due to restraints placed on them by the Chinese government and are actually rolling towards electric as we speak. Here follows the history of the new order as it has unfolded:
There is a great shrinking and re-conglomeration of gasoline bike makers that is happening right now as we watch. Bajaj and Mahindra are the dual cores of this effect as they buy up older "bigger" brands and move all the production of the bikes to India.
Bajaj and KTM
The partnership between India's Bajaj and Austria's KTM is one of the great success stories of the motorcycle industry, having begun a decade ago in 2007 when Bajaj purchased a 14 percent stake in KTM. This enabled KTM to triple its annual production numbers from 65,000 in 2007 to 200,000 in 2017, and become the largest motorcycle manufacturer in Europe along the way.
Bajaj has now invested around $250 million in KTM and produces around 100,000 KTMs a year at its manufacturing facility in Chakan, near Pune. In turn, beyond KTM's core competency of building "race ready" performance motorcycles, it owns a number of highly relevant technology companies, such as renowned motorcycle suspension company WP, and aerospace manufacturer Pankl, which produces key components such as turbines and conrods for aircraft and high performance engines. The relationship provides access to an ecosystem of manufacturing competency.
Bajaj's philosophy of developing long-term relationships to achieve growth has been very successful, and Bajaj is also the Kawasaki distributor in India. Last month (July 2017), Bajaj went very close to purchasing the Ducati brand name from Lamborghini (in turn, a subsidiary of Volkswagen Group), but the deal failed at the eleventh hour for unknown reasons. Within weeks, it had found an alternative new partner of similar promise: Triumph.
Bajaj and Triumph
Esteemed British motorcycle manufacturer Triumph announced it would partner with India's Bajaj last week, with the aim of delivering a "range of outstanding mid–capacity motorcycles benefiting from the collective strengths of both companies." With similar existing sales numbers to KTM at the beginning of the Bajaj relationship, plus R&D resources capable of producing state-of-the-art motorcycles for enthusiasts, Triumph and Bajaj have the makings of an ideal and very rewarding partnership.
Bajaj and Husqvarna
Last month, Bajaj and KTM announced they would globally roll out a full range of Husqvarna motorcycles, another well-known European motorcycle brand name with an extraordinary heritage, having begun manufacturing motorcycles in 1903.
KTM acquired a long-term license agreement for the use of the Husqvarna brand from BMW in 2013 and the announced plans call for Husqvarna motorcycles to be manufactured in the same Indian plant (Chakan) as KTM, and distributed in equal numbers to KTM in the medium term.
The first planned Husqvarna models, the Vitpilen 401 (pictured above), Svartpilen 401 and the Vitpilen 701 will be produced by KTM in Austria, and launched in 2018. Later in the year, production of the Vitpilen 401 and Svartpilen 401, which share the KTM 390 Duke engine, will be transferred to Bajaj's Chakan factory.
KTM production in India is expected to exceed 100,000 units this year, and with Husqvarna production to be ramped up from 2018, that number of motorcycles produced from the KTM relationship is expected to double to 200,000 over the next few years.
Hence, in addition to the two million Bajaj motorcycles sold in 2016, the fourth largest Indian motorcycle manufacturer has leveraged its success developing two of its own brands (KTM and Husqvarna), and nurturing a non-equity partnership with Triumph.
TVS and BMW Motorrad
In 2013, the third-largest Indian motorcycle manufacturer, TVS, announced a strategic partnership with Germany's BMW Motorrad to design and build sub-500cc aspirational motorcycles under the BMW brand for both the Indian domestic and global markets. In 2016, TVS sold 2.48 million motorcycles in India, but had never produced a motorcycle larger than 250cc.
The new BMW G 310 R was announced in 2015, and is currently rolling out into developed countries under the BMW brand (see our first test of the bike), with production taking place at the TVS Hosur plant in Tamil Nadu. Production is still ramping up, with 4,772 units produced in 2016-2017 financial year, and 2,000 units produced last month.
Sales will begin in India next year once BMW has developed a more extensive dealership network, with more new models designed by BMW Motorrad and built by TVS to follow.
Mahindra and Peugeot
Mahindra & Mahindra is one of India's largest companies with annual revenues of US$13 billion. The company is India's largest producer of SUVs and utility vehicles and its subsidiaries include the world's largest tractor manufacturer. It has been working toward building a presence in the Indian motorcycle industry since 2008 with little success, though the last few years has seen an intensification of effort and expenditure that indicates that failure is not an option.
The company created Mahindra Racing and began racing in the World Motorcycle Championships in 2011, at first in the 125cc class, then in the Moto3 (250cc) class. In 2016, the team was supplying several satellite teams plus an official Peugeot team with motorcycles and experienced its first success with two Grand Prix wins.
Mahindra Two Wheelers, the eighth largest motorcycle manufacturer in India, acquired a controlling interest (51 percent) of Peugeot Motocycles in 2015. Peugeot claims to be the oldest motorcycle manufacturer in the world, though it's debatable whether the claim is technically accurate. Peugeot showed the motorcycle above at the 1898 Paris Exhibition, but did not actually begin manufacturing motorcycles until 1901, the same year that England's Royal Enfield and America's Indian began production.
Perhaps even more relevant to Mahindra's ambitions was the purchase in 2015 of the famous Italian design house Pininfarina for $185 million. Pininfarina's long-term relationship with Ferrari as its designer of choice over the last 70 years will enhance Mahindra's ability to create premium products.
Mahindra and BSA
In 2016, Mahindra & Mahindra acquired a controlling share in Classic Legends Private Limited (CLPL). Subsequently, in October 2016, Classic Legends acquired the rights and trademarks for the legendary British Motorcycle company BSA. Classic Legends paid just £3,399,600 (US$4,150,000) for the rights to resurrect one of the best known motorcycle brands in history, a company that was once the largest motorcycle manufacturer in the world.
Detailed plans for the marque are still unclear, but design of a range of 500cc to 750cc motorcycles is known to be underway in Italy and manufacturing facilities are being built in both France and India with a view to a brand launch in 2019. Mahindra has also confirmed that it has acquired the rights to the "Gold Star" brand, which was synonymous with BSA for many decades.
Mahindra and Jawa
In the same 2016 time-frame as it acquired the rights to BSA, Mahindra subsidiary Classic Legends also acquired the Czech motorcycle manufacturer Jawa and, in a separate deal, the rights to the name Yezdi. Jawa motorcycles were sold in over 120 countries during the 1960s and 1970s, with the distinctive two-strokes enjoying a reputation for reliability that borders on legendary.
If you've never heard of a Yezdi, you're probably not alone if you live outside India. Jawa motorcycles were initially distributed in india by Ideal Jawa, but eventually were rebranded as Yezdi and the acquisition of both Jawa and Yezdi names indicates greater plans are afoot. Mahindra has already confirmed that a global dealership network is planned for both Jawa and BSA. The recent inauguration of a Yezdi web site aimed at the Indian market suggests the beloved Yezdi name will be used in India.
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