Symbiotic relationships where crocodiles lie on riverbanks with their mouths wide open, inviting small birds called Plovers to pick off bits of food, thus preventing infection perhaps provide an apt analogy for the evolving strategies in the Indian automotive industry, which now seems more organic than ever.
Valued at over $100 billion, India's automotive industry has become the world's third-largest auto market, trailing only the US and China. Reports highlight that India is the fourth-largest car manufacturer and the biggest two-wheeler manufacturer globally, producing 21 million two-wheelers annually. A 2018 report reveals that one Honda Activa is sold every 10 seconds. There’s no denying that India's automotive market is experiencing its golden age.
The foundation of this was laid decades ago. In 1954, Tata Motors (then Telco) formed a joint venture with Mercedes-Benz to produce commercial vehicles like trucks and buses. The two giants collaborated again in 1994 to produce the Mercedes-Benz W124 E220, launched in 1995. According to reports, the India-spec model had a raised ride height and additional chassis reinforcements. Powering it was a 2.2L naturally aspirated petrol engine that produced 150 PS and 210 Nm of torque, with a top speed of 210 km/h. A similar agreement was signed between TVS and Suzuki in the 90s as well, resulting in what some consider the Yamaha RX100 beater— the Shogun. While both the E220 and the Shogun somewhat fell short of resonating with the market of that time owing to costs, it paved the way for the eventual success of the Maruti 800.
India's economy is heavily driven by domestic consumption. Consequently, many products, including motorcycles and cars, are designed to be price conscious. By acquiring well-established foreign brands, Indian companies are accessing new markets and customer bases instantly, rather than starting from scratch.
This strategy seems to be working in more ways than just providing Indian customers access to foreign brands. For example, in 2008, Tata Motors acquired the iconic British brands Jaguar and Land Rover (JLR) from Ford for $2.3 billion. This move allowed it to utilise JLR’s R&D to enhance its domestic products, especially its SUV range. Companies like KTM, Triumph, Harley-Davidson, and the nearly defunct Norton Motorcycles have either formed joint ventures with Indian brands like Bajaj, Hero, and TVS or have been bought by them.
Maruti and Toyota: The partnership between Maruti Suzuki and Toyota is the latest testament to this strategy. In 2017, the two companies entered into a cross-badging agreement, where Suzuki would supply models to Toyota for the Indian market. Maruti Suzuki benefited from Toyota’s hybrid technology, while Toyota gained access to Maruti’s extensive sales network in India. Models like the Toyota Glanza and Urban Cruiser, which are rebadged versions of Maruti Suzuki’s Baleno and Vitara Brezza respectively, are products of this collaboration.
Bajaj and KTM: In 2007, Bajaj Auto acquired a significant stake in the Austrian motorcycle manufacturer KTM, allowing Bajaj to diversify its offerings with high-performance motorcycles. This collaboration has been mutually beneficial, with KTM leveraging Bajaj’s manufacturing capabilities to produce cost-effective bikes for global markets. Bajaj has benefited from KTM's brand reputation and technological prowess, enabling it to compete more effectively in the premium motorcycle segment. The Bajaj Pulsar NS range remains popular among the masses. Similarly, KTM's Duke and RC series, manufactured in India, are exported globally.
Bajaj and Triumph: The Chakan-based bikemaker signed a global partnership with Triumph in 2017, sparking a flurry of rumors for years afterward. It wasn't until last year that the collaboration yielded results: the Triumph Speed 400 and Scrambler 400X, middleweight motorcycles produced by Bajaj. This partnership allows Triumph to enter the highly competitive middleweight segment, while Bajaj benefits from its partner's technological expertise in its upcoming rumored premium products.
TVS and Norton: TVS's 2020 acquisition of Norton Motorcycles diversified its lineup, bringing classic British design and high-performance models like the Norton Commando and Dominator under TVS's management. This joint venture though, seems unlike TVS’s collaboration with BMW Motorrad, which didn’t quite live up to its high expectations. Although the likes of the TVS Apache RR 310 or the BMW G 310 GS and the G 310 R, seem to have found its niche audience
Hero and Harley-Davidson: Hero MotoCorp’s partnership with Harley-Davidson in 2020 expanded premium offerings, leading to new models like the Harley-Davidson X440. This partnership allows Hero to benefit from Harley’s brand appeal and expertise in premium motorcycles while Harley can leverage Hero’s extensive distribution network to strengthen its presence in India. The collaboration has also paved the way for potential joint product development, combining Hero's manufacturing capabilities with Harley's iconic design and engineering.
Jawa, Yezdi & Mahindra: Back in December of 2018, Mahindra-backed Classic Legends brought back the iconic Jawa moniker, with the launch of the Jawa and Jawa Forty Two, powered by the old Mahindra Mojo engine. Since then, the same company also revived the Yezdi moniker, launching the Scrambler, the Roadster and the recently updated Adventure motorcycle.
All in all, it's a win-win, much like the crocodile and the plover, or the shark and the remora. Here are a few examples:
Toyota Glanza (Rs 6.86 - 9.99 Lakh)
Based on the Maruti Suzuki Baleno, the Glanza shares the same design silhouette with a few visually distinct elements. It features a 1.2-litre Dualjet petrol engine, delivering 89PS and 113Nm. The feature list includes a heads-up display (HUD), rear AC vents, cruise control, and connected car technology.
Toyota Urban Cruiser Hyryder (Rs. 11.14 - 20.19 Lakh)
A rebadged version of the Maruti Suzuki Grand Vitara, the Toyota Urban Cruiser Hyryder is based on Suzuki’s Global C-Platform. It offers creature comforts like a 9-inch infotainment system, wireless phone charging, head-up display, 17-inch alloy wheels, a 360-degree camera, connected car technology, ventilated front seats, a digital driver’s display, and a panoramic sunroof. It is powered by two 1.5-litre petrol powertrain options with mild-hybrid and self-charging strong hybrid variants.
KTM 390 Duke and Husqvarna Svartpilen 401 (Rs 3.11 lakh and Rs 2.92 lakh)
Launched last year, both the KTM 390 Duke and the Husqvarna Svartpilen 401 are powered by the same 399cc liquid-cooled Euro 5.2-ready engine, producing 44.86PS of power and 39Nm of torque. The Duke is more aggressive in design, while the Husky is more subdued. The Husqvarna lacks cornering ABS, alloy wheels, and riding modes, making it Rs 20,000 more affordable.
Triumph Speed 400 and Scrambler 400X (Rs. 2.34 lakh and Rs 2.64 lakh)
Launched one after the other, both the Speed 400 and the Scrambler 400X are equipped with the same 398.15cc liquid-cooled single-cylinder engine, producing 40PS at 8000rpm and 37.5Nm at 6500rpm. The Speed 400 is a roadster with a lower seat height and a neo-retro design, while the Scrambler 400X is off-road biased, featuring a taller seat height and overall scrambler aesthetics.
Harley-Davidson X440 and Hero Mavrick (Rs 2.39 lakh)
Launched last year, the Harley-Davidson X440 boasts a strong neo-retro stance, drawing inspiration from the iconic XR1200. It features a retro-styled round LED headlight and a modern LED DRL strip with 'Harley-Davidson' branding. Following its launch, Hero introduced the Mavrick 440, featuring a more modern and contemporary style. However,powering the two motorcycles are the same 440cc air-oil-cooled single-cylinder engine, delivering 28PS at 6000rpm and 38Nm (36Nm on the Mavrick).
