Kawasaki Heavy Rises to 4-Month High on Bajaj Tie-Up

Kawasaki Heavy Industries Ltd, Japan’s fourth-largest supplier of motorcycles, rose to the highest in four months in Tokyo trading on plans to build motorcycles in India with partner Bajaj Auto Ltd. next year.

Kawasaki Heavy shares gained 2.5 percent to 293 yen on the Tokyo Stock Exchange, the highest since Jan. 10. Kobe, Japan- based Kawasaki has had a technical partnership with Bajaj, India’s second-biggest motorbike producer, since 1986.

A tie-up would help Kawasaki Heavy, maker of the Ninja racing bikes, to compete in the world’s second-largest two- wheeler market dominated by Honda Motor Co. Kawasaki Heavy’s entry into India comes as its sales in North America decline on lower consumer spending.

Kawasaki Heavy may use Bajaj’s production sites at Pune, India to produce Kawasaki-brand sports bikes with engines of 150 cc or more, Katsuhiro Sato, a spokesman for Kawasaki Heavy, said today by telephone. Rajiv Bajaj, Bajaj Auto’s managing director, couldn’t be reached for comments.

The Nikkan Kogyo Shimbun reported the manufacturing alliance earlier today, citing Managing Executive Officer Shinichi Tanba.

The unit that makes motorcycles and jet skies is the biggest for Kawasaki Heavy. The company also builds liquefied natural gas tankers, airplane components and rail cars.

This article was taken from: Bloomberg