Modenas set to strengthen presence via Bajaj tie-up
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