Bajaj Auto plans to sell automotive components to Kawasaki Heavy Industries, the Japanese two-wheeler giant.
The move is aimed at reducing the manufacturing costs of Kawasaki for its product range in Japan and for its subsidiaries in countries like Philippines and Malaysia.
According to Rajiv Bajaj, president of Bajaj Auto, the company currently shares a license agreement to manufacture Kawasaki-developed motorcycles in India.
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The proposed alliance for sourcing auto components marks the third phase of its relationship with Kawasaki.
"We are just starting to develop components for Kawasaki. This is a recent proposal and it will take a few months to materialse. The idea is to help Kawasaki make motorcycles in Japan or in their subsidiary companies," he said here on Wednesday.
"The move is also expected to reduce their costs by sourcing components from India. If their costs come down, they will become stronger, which will also strengthen our relationship with them," Bajaj said.
He, however, did not specify the volume of business Bajaj Auto was looking at through export of components.
"Our relationship took off with a target to be within challenging position to the number one manufacturer of motorcycles in the country. As part of the next phase, we are looking at reasonable exports. During the last one year, we have been sending samples to many countries, through Kawasaki's network, to get consumer research done before arriving at the changes necessary for the products," Bajaj added.
Currently, all motorcycle offerings from Bajaj Auto -- Boxer, Caliber, Caliber Croma, Aspire and Eliminator -- are products developed by Kawasaki.
However, Bajaj Auto is now preparing the ground for launch of its indigenously launched 4-stroke bike, the Pulsar, in the second half of this fiscal.
Commenting on how Bajaj Auto sees its co-existence with Kawasaki, Bajaj said, "The Kawasaki range of products will start from 100cc, starting from maybe Rs 35,000, all the way up to Rs 2.5 lakh. On the other hand, our own range will be priced between Rs 30,000-60,000. We are not targeting superior bikes like 500cc or more on our own."
The company is planning two variants of the Pulsar, with 150cc and 180cc engine options in the premium mid-size segment, with a price difference of around Rs 8,000. The Pulsar will be pitted against the Hero Honda CBZ and TVS Suzuki's Fiero.