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Quality key to exports: Kawasaki to Bajaj

Rakesh Hari Pathak in Tokyo | October 29, 2003 15:42 IST

Japanese two wheeler giant Kawasaki has asked its alliance partner Bajaj to improve quality to tap the enormous motorcycle export potential, while indicating that the Indian partner could consider pumping in more money in the venture as they had no plans for financial participation.

"Quality is the most crucial issue... at the moment Bajaj may be satisfied with domestic market... we are talking to Bajaj for improving quality to export successfully," Shinichi Morita, managing director and president of Kawasaki Heavy Industries, told PTI during the ongoing Tokyo Motor Show.

Asked if Kawasaki would be satisfied only as technology provider in the fast growing motorcycle market in India or consider buying equity in the venture with Bajaj, Morita said "Bajaj is a strong partner...they have enough money to make more investment if needed."

Morita had come to India last month to talk to Indian partners to explore various growth possibilities both in the domestic and export market.

On what was the response of Bajaj, the undisputed king of the scooter market, which is placed second after Hero Honda in the motorcycle market, on more investment, Morita said, "it was both yes and no."

"Yes because we talked as collaborator and no because Bajaj is an independent entity and they make their own business decisions," he added.

Taking note of the renewed interest of global two wheeler players like Yamaha, Suzuki and Honda for augmenting their respective position in India and using the country as a promising export base, Morita said that the Indian venture was manufacturing lower end products, while Kawasaki was making higher quality and more powerful two wheelers.

"We recently introduced a new 125 CC motorcycle Wind in India earlier this year... we may consider introduction of more models," he added.

Satisfied with the Indian alliance, Morita said, "Bajaj is a strong partner with a good production base... we are fully satisfied with our association."

As to why Kawasaki was not considering financial partnership in India, Morita said, "We have our own priorities. As such there is no guarantee that new investment would prove good...no investment is needed now."

Morita said that he had visited the Bajaj facilities in September and was impressed by the networking and infrastructure created by the Indian partner.

Stating that the Indian market was growing fast, he said that his company could consider introduction of more powerful vehicles for domestic consumers in the future but did not give details or any timeframe.


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