Italian motorcycle brand MV Agusta has entered into a new collaborative partnership with China's Loncin Motor Company Ltd to introduce a range of "accessible" new motorcycle models with engine displacement ranging from 350 cc to 500 cc. As many as four new models under the MV Agusta brand will be manufactured under the agreement, and the first of these new motorcycles will be launched before the end of 2021. Timur Sardarov, CEO of MV Agusta Motor has signed an agreement with Yong Gao, chairman and president of Loncin Motor Company to develop and manufacture these new models.
According to the agreement, MV Agusta will design and develop four models, while Loncin Motor Company will manufacture these motorcycles in China to cater to Asian markets. According to MV Agusta, the four models will embody the unique MV Agusta DNA, its unique style, sound and vehicle dynamics. While MV Agusta has stated that these models will be created and developed by the Italian brand and only manufactured by Loncin, it's still not clear if there will be a new design and development team based out of China to develop these small displacement bikes. The new models will be sold by both MV Agusta and by Loncin's premium brand VOGE.
Timur Sardarov, MV Agusta CEO and Yong Gao, Loncin Motor Company President sign the agreement
"This strategic alliance is an important step to consolidate our vision for the future of MV Agusta. Our target is to reaffirm our leadership in the production of upper-premium motorcycles, while also enlarging our customer base by offering a broader range of products without compromising our distinctive design and performance. We are looking forward to grow with the right partners and the right products, making sure that our clients enjoy the larger choice of models, all of which share the same DNA and MV Agusta pedigree," said Timur Sardarov, CEO, MV Agusta Motor.
"The conclusion of the strategic agreement is conducive to Loncin's and MV Agusta's joint response to the changes in global market demand and to the coordinated development of both sides. Loncin will use advanced manufacturing resources and Chinese market knowledge to help MV Agusta expand its product line and enhance product competitiveness. MV Agusta's technology, and advanced design experience of high-performance motorcycles will support Loncin's VOGE brand in becoming the market leader of premium motorcycles in China. I am looking forward to our strategic cooperation based on the principles of mutual benefit and success," said Yonging Gao, President of Loncin.
Both companies have announced that the partnership will not be limited to the development of the new family of products in the 350-500 cc range. MV Agusta will also assist Loncin into entering the premium segment market with its premium range of 800 cc motorcycles. The latest agreement will give MV Agusta an opportunity to grow its range to include more accessible and affordable lower displacement motorcycles. It's still not clear though if MV Agusta will only be providing the design and chassis and if these new family of motorcycles will have powertrains based on any existing Loncing platform. Either way, it will be a big opportunity for a niche premium brand like MV Agusta to get a foothold in the larger volumes small displacement segments.
In India, MV Agusta bikes in the 800-1000 cc segment are marketed and sold under the MotoRoyale initiative by the Kinetic Group. These bikes are assembled from semi-knocked down kits in India, but are still priced at a premium compared to other Japanese and European motorcycle brands in similar segments. The 250-400 cc motorcycle segment is one of the fastest growing segments in India, the world's largest two-wheeler market. And it will be natural for MV Agusta to take a look at India's booming two-wheeler market once these new models are developed and launched. Whether the new family of 350-500 cc MV Agusta bikes will also be sold by Motoroyale remains to be seen.
