After speculation that Malaysian motorcycle manufacturer Motosikal Dan Enjin Nasional (Modenas) would be tying up with a new strategic partner, it has now been confirmed that it will be collaborating with Bajaj Auto of India. This is part of Modenas plan to strengthen the brand and capture a larger share of the small motorcycle market in Malaysia.

The collaboration will take place in stages, and includes distribution and technology transfer through the development of a dedicated assembly hub in Modenas’ plant in Gurun, Kedah. Future plans for the strategic partnership include penetrating international markets, such as Asean and beyond.

“The cooperation is in line with our aspiration to strengthen Modenas as a whole, by offering a wider range for motorcycle enthusiast,” said Datuk Sri Syed Faisal Albar, DRB-Hicom group managing director. “The local market was very receptive to the Modenas joint venture with Kymco in the scooter segment, and the company is ready to embark into a more aggressive market, which is the street bike segment. With Bajaj as our partner, we now have a new segment we can cater to,” he explained.

Bajaj Auto of India is the world’s sixth-largest manufacturer of motorcycles and the second-largest in India, with a market capitalisation of USD 9.5 billion (RM41.88 billion).

“There is no doubt that BAL has the experience and technological know-how for this segment. The Bajaj models we are looking to introduce into Malaysia in the coming months have proven themselves globally, and we believe this will be replicated in Malaysia too,” said Syed Faisal.