bajaj - piaggio

8/4/2019 Bajaj - Piaggio

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Bajaj - PiaggioAshish Chowdhary

Priyank Jain


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Hamara Bajaj

Incorporated in 1945 Bachraj Trading Corp

Ltd.

1960 Name changed to Bajaj Auto Pvt. Ltd.

Again renamed to Bajaj Auto Ltd. (in two months)

To manufacture and market Bajaj scooters,

motorcycles and 3 wheelers and spare parts.


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Italiano Piaggio

Founded in 1884 Producing locomotives andrailway carriages.

World War 1 Focused on aircraft production.

World War 2 Produced bomber aircraft butthe plant was completely demolished by Alliedforces bombing.

Son of founder addressed the need foraffordable mode of transportation andlaunched the legendary Vespa.


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Collaboration

Till 1959, Bajaj imported scooters and three-

wheelers from Italy and sold them in India.

1959 Bajaj got a production license from the

Govt. of India and fastened a technical

collaboration with Italian firm Piaggio in 1960.

Reincarnation Name changed to Bajaj Auto

Ltd.


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Rosy picture

Rahul Bajaj adored the Vespa scooters.

Till 1970 Bajaj produced 1 lakh scooters withannual turnover of Rs 72 million.

Bajaj became the market leader in twowheelers with Bajaj Chetak selling like hot-cake and advance booking going on for as high

as 12 years. Oil crises in 1973 Cars off the road and two

wheelers in demand.


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Conflict

No conflict, per se.

Technical collaboration to run out in 1969 but

was extended till 1971.

The govt. refused to extend it further.

An end to an era of fruitful collaboration -

Indira Gandhis govt. brought in newregulations (as part of Privatisation prog.)

which prohibited continuance of alliance.


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Talks for re-collaboration

First phase of economic and industrialisation

liberalisation in 1980s -> Piaggio tried to coax

Bajaj for re-collaboration.

Bajaj, by then, had acquired a cult status.

Also, the suit filed by Piaggio against Bajaj was

another bone of contention.

Re-collaboration did not happen.


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Fate

On 31st March 1971 The collaboration ended.

Brand name changed from Vespa to Bajaj.

In 1975 Manufactured scooters under brand

name of Priya in collaboration with WesternMaharashtra Development Corp. Ltd.

In 1979 Piaggio sued BAL -> Breach of contract,trademark laws, using designs, etc. for $50million to block Bajaj scooter sales in the US, theUK, West Germany and Hong Kong.

In 1984 The dispute came to settlement in thedistrict court. Result -> No payment, no selling ofBajaj scooters of Piaggio designs in the US


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Fate

1973 A suit was filed against the German(West) distributors of BAL, Zweirad RaothGmbh, by Vespa to prohibit them from selling

Bajaj scooters in West Germany. 1990 The distributors agreed and started

selling the scooters with tag Made in India.

1983 - Collaboration with Kawasaki HeavyIndustries for 100 cc engines motorcycles.


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Fate

1983 Piaggio collaborated with LML but was

again all alone in 1999.

2007 Piaggio re-entered India with 3

wheelers

2012 Piaggio to re-launch Vespa in India

market.


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Current Situation

Bajaj No. 2 in India in manufacturing of two

wheelers.

Piaggio No. 1 in 3 wheeler manufacturing in

India

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