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Old 15th November 2016, 10:30   #1
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Default Rumour: Bajaj-Kawasaki to break sales & service tie-up

Kawasaki sells the Ninja 300, Z250, ER6n, Ninja 650 & Versys 650 via KTM dealerships currently. However, Motorbeam reports that these bikes will not be sold via KTM dealerships from April 2017.

KTM has a wide spread dealer network in India which has enabled Kawasaki to expand its customer base in many Tier-II and Tier-III cities as well. With this break-up, the customer base will get hampered as exclusive Kawasaki dealers are present only in the Tier-I cities in India.

This article, however, mentions that these Kawasaki bikes will continue to be assembled in the Bajaj's Akurdi plant in Pune.

Source: Motorbeam

Quote:
While the reason for this break in ties cannot be ascertained at this moment, we feel it could be a two way decision. Kawasaki has been setting up its own dealer network through which it retails its CBU models and through the same it would sell its CKD motorbikes as well. The other reason could be the competition Kawasaki bikes face at KTM outlets from the better priced orange machines.

Bajaj could have also taken this decision as the money they make on a sale of a KTM motorcycle is much more than what they do on a more expensive Kawasaki. With KTM planning to expand its India range in the near future with the launch of the Duke 790, Adventure 390 and RC 790, they need more showroom space for sure.

What does this mean for the potential buyer? Kawasaki outlets for bikes under 650cc went from 160 to under 10. The locally assembled Kawasaki bikes could become cheaper as Bajaj will no longer take any profit on sale.
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Old 15th November 2016, 12:04   #2
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

No, not again with me.

I booked my car back in 2012 and within few days got the announcement that FIAT is going to split with TATA. Now I book my bike and Kawasaki wants to seperate from Bajaj.

That said, heard this rumour last month and the Kawasaki owners seem ok about the decision. From my limited personal experience, I can also say that Bajaj showrooms provide an indifferent attitude towards Kawasaki, no test rides before booking etc. Not sure about the service coverage aspect though, as Bajaj centres were present in many towns, and Kawasaki will need to start from scratch.
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Old 15th November 2016, 13:32   #3
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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Originally Posted by CrAzY dRiVeR View Post
No, not again with me.

I booked my car back in 2012 and within few days got the announcement that FIAT is going to split with TATA. Now I book my bike and Kawasaki wants to seperate from Bajaj.
And your Avatar picture on TBHP is a Black cat!

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That said, heard this rumour last month and the Kawasaki owners seem ok about the decision. From my limited personal experience, I can also say that Bajaj showrooms provide an indifferent attitude towards Kawasaki, no test rides before booking etc. Not sure about the service coverage aspect though, as Bajaj centres were present in many towns, and Kawasaki will need to start from scratch.
People in Tier I cities may not face any problem, but people in Tier II cities may feel inconvenienced. If it is for usual maintenances, it won't be a problem for them, for they get a reason to ride to the closest Tier I city, but a major repair or a breakdown repair will be a problem for the owners in such cities
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Old 15th November 2016, 18:27   #4
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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Originally Posted by CrAzY dRiVeR View Post
No, not again with me.

I booked my car back in 2012 and within few days got the announcement that FIAT is going to split with TATA. Now I book my bike and Kawasaki wants to seperate from Bajaj.

That said, heard this rumour last month and the Kawasaki owners seem ok about the decision. From my limited personal experience, I can also say that Bajaj showrooms provide an indifferent attitude towards Kawasaki, no test rides before booking etc. Not sure about the service coverage aspect though, as Bajaj centres were present in many towns, and Kawasaki will need to start from scratch.
It will be good for you. They are planning to open one at Thiruvanthapuram.

Also this news was in offing. I hope this will lead to better service as the direct volume of Kawasaki will increase. Also CKD kits of Z800/Z900 would also come by later.
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Old 15th November 2016, 19:01   #5
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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Originally Posted by hemanth.anand View Post
People in Tier I cities may not face any problem, but people in Tier II cities may feel inconvenienced. If it is for usual maintenances, it won't be a problem for them, for they get a reason to ride to the closest Tier I city, but a major repair or a breakdown repair will be a problem for the owners in such cities
Due to Bajaj, Kawasaki had presence not just in Tier II but also many Tier III cities. While something like Ninja 300 is exquisite, I don't think it is exquisite enough for someone to ride even 200 kms for regular services or minor repairs. With increasing spending capacity and introduction to performance bikes with KTM, Kawasaki had gained good traction in smaller cities, all that will be lost now.

Yamaha will be direct beneficiary of this and R3 should see increase in sales now.
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Old 15th November 2016, 21:40   #6
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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Originally Posted by CrAzY dRiVeR View Post
No, not again with me.

I booked my car back in 2012 and within few days got the announcement that FIAT is going to split with TATA. Now I book my bike and Kawasaki wants to seperate from Bajaj.
C_D : Dont worry about this split. Your Versys will anyways will be serviced by KTM ASC only and not by the Kawasaki ASC

Therefore, it does effect us Versys owners if their partnerships fall apart as you can still visit the same personnel to service your motorcycle (using your relationship, ofcourse)

P.S : I doubt if IKM will take this decision so soon as they are not equipped to service the Kawasaki motorcycles and also this decision means a large investment to support this break in partnership.

Last edited by GTO : 16th November 2016 at 08:39.
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Old 16th November 2016, 07:43   #7
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

This is a necessary move, at least as far as service is concerned. KTM and Kawasaki tyoically get only two or three motorcycle service bays in an already crowded Bajaj service center.

With KTMs sales growing and Kawasaki also increasing its portfolio/sales things are headed for a serious logjam.

Besides the obvious conflict of interest from a brand perspective and the resultant loss in exclusivity, Kawasaki is better off alone.

So is KTM, for that matter.
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Old 16th November 2016, 08:48   #8
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

Is Kawasaki capable of taking care of its own dealers? After seeing this horror story and their awfully shoddy responses, I have my doubts - link (Paid for Z800, but no bike! Kawasaki uncooperative. EDIT: Bikes delivered (page 11)). Those dudes were fighting for their bikes since the longest time. It only got resolved once the thread was on Team-BHP's homepage.

That thread was full of complaints, and I remember reading some that were not specific to the Navi Mumbai dealer. I don't follow the two-wheeler segment much, but based on what I've read so far, Kawasaki seems to have dealer handling issues similar to Skoda & Nissan. And that's a terrible thing.

Maintaining a good sales & service network is as complicated as (if not more than) manufacturing the car / bike itself!

Last edited by GTO : 16th November 2016 at 08:50.
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Old 16th November 2016, 10:12   #9
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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Originally Posted by //M View Post
Kawasaki sells the Ninja 300, Z250, ER6n, Ninja 650 & Versys 650 via KTM dealerships currently. However, Motorbeam reports that these bikes will not be sold via KTM dealerships from April 2017.

KTM has a wide spread dealer network in India which has enabled Kawasaki to expand its customer base in many Tier-II and Tier-III cities as well. With this break-up, the customer base will get hampered as exclusive Kawasaki dealers are present only in the Tier-I cities in India.]
[/url]
Another heart-breaking situation for Kawasaki bike owners. It is going to be a big set-back for Pune itself as it has only ONE exclusive Kawasaki showroom catering to bike range from Z800 and above.

Looking at the effective date of April 2017; it seriously is a big challenge for Kawasaki to ramp up their infrastructure and capacity.

I wonder what strategies are planned without hampering the existing customer base and looking to capture the new ones as well. I am skeptical about it. April 2017 doesn't seem practical.
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Old 16th November 2016, 10:59   #10
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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Originally Posted by Amey Kulkarni View Post
It is going to be a big set-back for Pune itself as it has only ONE exclusive Kawasaki showroom catering to bike range from Z800 and above.
.
Pune has two dedicated Kawasaki dealerships Amey. One is the Wakdewadi Kawasaki showroom, which caters to 800cc and above bikes and there is another dedicated Kawasaki showroom next to Starbucks in the North Main Road, Koregaon Park.

It remains to be seen if Kawasaki Wakdewadi showroom will be retained or not as the entire property is probably owned by Bajaj.
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Old 16th November 2016, 11:34   #11
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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Originally Posted by //M View Post
Pune has two dedicated Kawasaki dealerships Amey. One is the Wakdewadi Kawasaki showroom, which caters to 800cc and above bikes and there is another dedicated Kawasaki showroom next to Starbucks in the North Main Road, Koregaon Park.
I had visited the Kawasaki showroom in Koregaon Park a few week back; which is run by Khivraj Motors.

What I understood from them was that they have shut down the Wakdewadi showroom and started the Koregaon Park one.

Last edited by Amey Kulkarni : 16th November 2016 at 11:40.
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Old 16th November 2016, 11:47   #12
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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Originally Posted by Amey Kulkarni View Post
I had visited the Kawasaki showroom in Koregaon Park a few week back; which is run by Kivaraj Motors.

What I understood from them was that they have shut down the Wakdewadi showroom and started the Koregaon Park one.
Oh I didn't know about this. My bad !

So basically the new showroom in KP replaced the existing one in Wakdewadi. The old showroom was much bigger though.
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Old 16th November 2016, 11:54   #13
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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So basically the new showroom in KP replaced the existing one in Wakdewadi. The old showroom was much bigger though.
The Wakdewadi showroom was way bigger and had ample amount of space for parking and being on the old Mumbai-Pune highway, the approach road was convenient too.

Now, the Koregaon Park one is right besides the main chowk, opposite The O Hotel where it is always crowed and chaotic.

Tough times ahead!
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Old 16th November 2016, 12:09   #14
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

Well, my take on this decision is positive.

I think due the recent mumbai dealer horror story, IKM may have decided to consolidate the range under one umbrella. Looking at the expanding Indian market for bigger motorcycles and the rising competition they might have decided to take things fully in their hands for the whole range of motorcycles and not have Bajaj responsible for the smaller 250-650 cc range of motorcycles.

Only time will tell whats the real deal, but one thing is for sure that Kawasaki is here to stay, the way they finally handled the delayed deliveries issue shows that they are serious. Let's hope for the best!
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Old 17th November 2016, 09:29   #15
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Default Re: Rumour: Bajaj-Kawasaki to break sales & service tie-up

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I think due the recent mumbai dealer horror story, IKM may have decided to consolidate the range under one umbrella.
That particular dealership was a standalone Kawasaki outlet, wasn't it? If it was shared with Bajaj, I'd agree. But that wasn't the case.

Quote:
the way they finally handled the delayed deliveries issue shows that they are serious
You got to be kidding me. For months, Kawasaki wasn't even ready to talk to those who had booked those missing bikes. It's only after our coverage (and other websites following) that Kawasaki stepped in to resolve matters.

While I appreciate them eventually delivering the bikes, they haven't done anyone a favour. They merely gave customers the bikes that they'd paid for. And the only reason they came around is due to the negative publicity. Before that, they were NOT EVEN willing to step into the situation room.

Because there were complaints in other cities too, this shows inherent mismanagement in how Kawasaki manages its dealers. Trust me, it's an art and most don't get it. I'll always be optimistic for the sake of Kawasaki bike owners, but the incident you quote is hardly a boost. In fact, its quite the opposite.
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