Triumph, MV Agusta expand into Asia

European motorcycle brands Triumph and MV Agusta are expanding into emerging markets, securing themselves long term deals that have the potential to deliver huge profits in future.

MV Agusta recently signed a pact with Chinese automaker Lifan to distribute motorcycles on the Chinese continent, in a move that could lead to a joint venture with the company.

The deal was sealed at the Beijing Fair, and will see Italian-made MV Agusta products imported into China, but what's not clear is what Lifan gets out of the deal. Chinese companies rarely enter into deals that benefit only one party, and we would expect that Lifan would acquire the rights to build MV Agusta models in the Chinese mainland in the next five years, or perhaps even develop a Chinese-specific line of small capacity motorcycles.

"Distributing the MV models through a prestigious society like Lifan ensures that we will enter into this very important market with a very strong commercial partner at our side, respecting the Chinese culture, mentality and laws," stated Umberto Uccelli, the Commercial Director of MV Agusta.

There is also the chance that Lifan could even buy out the Italian company if it saw fit. Lifan has signed a letter of intent with MV Agusta that outlines a  distribution deal with MV Agusta beginning late 2011 "through a network of high-end dealers".

Triumph meanwhile has signalled its intent to enter the Indian market, after having announced its intention to begin selling vehicles in the world's second most populous nation from 2012.

According to the Hinkley-based company, it has "in recent years been the fastest growing motorcycle brand in the world" and is extending its plans towards global domination with the appointment of Ashish Joshi as Triumph India's managing director.

However the British bike maker has not sought an Indian partner to gain a foothold in the world's second biggest motorcycle market, as MV Agusta has in China, decided to go it alone.

"India is a very important motorcycle market and Triumph has assessed it carefully before deciding to step in," noted Nick Bloor, CEO of Triumph Motorcycles. "We see it as the next step in our global business model. The appointment of Ashish Joshi is a signal of our seriousness about success in India. I wish him the best and look forward to comprehensive growth from the Indian market."

Unlike MV Agusta, which will begin selling its current models in China from late this year, it is unclear if Triumph will sell its UK-built bikes (or knock down kits) in India or will look to acquire manufacturing facilities in the sub continent. If the latter eventuates, we could see a new small capacity 125 to 250cc Triumph.

While MV Agusta and Triumph aren't giving away too many details of their expansion plans at this stage, one thing is certain - the Indian and Chinese markets will have a much greater influence over motorcycle design and product planning in the long term future.

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