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PUBLISHED: May 14, 2017 4:47pm

Bajaj partnership could boost Modenas capabilities

Bajaj-V

Source: Bernama Source:
Bernama

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KUALA LUMPUR, 14 May 2017: 

The partnership between Motosikal Dan Enjin Nasional (Modenas) and Bajaj Auto Ltd (BAL) of India is both timely and strategic in expanding the Malaysian motorcycle manufacturer’s domestic share of the small motorcycle market and penetrating regional markets.

Modenas’s partnership with BAL – the world’s fourth-largest three- and two-wheeler manufacturer and a proven international company – would put Modenas in good stead to strengthen its brand presence and garner a larger share of the ever-expanding motorbike market.

Part of the DRB-Hicom group of companies, Modenas is reportedly collaborating with BAL India in a move which analysts said would reinforce its credentials as a motorcycle maker.

A noteworthy benefit from the partnership that enables fully exploiting a growing domestic market and booming Asean market for two-wheelers is that it will be an added source of income for DRB group’s automotive division.

Demand for motorbikes in Malaysia keeps rising, due to its affordability and the same for Asean too, which is why the timing is also opportune.

Expanding economies along with population growth ensures good sales for Modenas-Bajaj bikes in Southeast Asian countries.

BAL is the ideal partner for Modenas because its motorbikes are proven to be hardy, reliable and well-priced, often described as the ‘Land Rover on two wheels.’

BAL is the world’s sixth-largest manufacturer of motorcycles and the second largest in India. It sells motorcycles, scooters and auto rickshaws.

The Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia.

BAL is a part of the Bajaj Group, which is among the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two wheeler and three-wheeler manufacturer), home appliances, lighting, iron and steel, insurance, travel and finance.

There are also spillovers to be gotten from the partnership. The increase in production numbers at Modenas factory would increase job prospects as more hiring of technicians is certain in order to meet higher manufacturing numbers.

This would undoubtedly be a boon for local technicians now coming out of colleges and technical schools, which means increased employment opportunities for technicians for motor services as production numbers rise.

Besides this, there would be a spillover of growth to autoparts suppliers already in the Modenas vendor supply chain.

Against such a backdrop, global partnerships as exemplified by the tie-up between Modenas and BAL is the right way to go.

An auto blogpost in India – Indianautoblog.com had on May 9 highlighted that the Bajaj Pulsar 200NS and the Bajaj Pulsar RS200 would be launched in Malaysia on May 19 as the Indian two-wheeler and three-wheeler manufacturer looks to expand in the Asean region.

The Indianautoblog said this clearly gives away that the first motorcycle for the Malaysian market is the 200NS.

Its Pulsar RS200 had in 2015-2016 bagged 14 product awards that included Autocar/Times Now and BBC TopGear “Reader’s Choice of the year”

DRB-Hicom group managing director Datuk Seri Syed Faisal Albar Syed Ali Rethza Albar was quoted as saying last month, “The cooperation is in line with our aspiration to strengthen Modenas as a whole, by offering a wider range for motorcycle enthusiasts.

“The local market was very receptive to the Modenas joint-venture with Kymco in the scooter segment, and the company is ready to embark on a more aggressive market, which is the street bike segment. With Bajaj as our partner, we now have a new segment we can cater to.

“There is no doubt that BAL has the experience and technological know-how for this segment. The Bajaj models we are looking to introduce into Malaysia in the coming months have proven themselves globally, and we believe this will be replicated in Malaysia too.”

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