Modenas set to strengthen pres­ence via Ba­jaj tie-up

New Straits Times - - Business -

KUALA LUMPUR: 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 mo­tor­cy­cle 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-HICOM group’s au­to­mo­tive di­vi­sion.

De­mand for mo­tor­bikes in Malaysia keeps ris­ing due to its af­ford­abil­ity. It is the same for Asean too.

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

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” and it’s the world’s sixth­largest 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 Southeast 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 three­wheeler 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.

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

PIC BY IN­TAN NUR ELLIANA ZAKARIA

Modenas’s part­ner­ship with Ba­jaj Auto Ltd is ex­pected to put Modenas in good stead to gar­ner a larger share of the ev­er­ex­pand­ing mo­tor­cy­cle mar­ket.

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