After a successful foray into the India market, Bajaj Auto and KTM AG are set to extend their network into Indonesia. The partnership plans to sell Duke and RC motorcycles in one of the biggest motorcycle markets in South East Asia.
Bajaj reached an agreement with KTM AG of Austria to extend its distribution network in Indonesia and expand business in this growing by price sensitive market in South East Asia. The arrangement will involve KTM branded Duke and RC motorcycles up to a displacement of 400 cc, which are developed and assembled by the Austrian-Indian JV.
The company said it will be distributing the motorcycles through a chain of KTM dealerships to be managed by Bajaj. Bajaj Auto holds 48% stake in KTM. The KTM Duke and RC range of motorcycles are manufactured at Bajaj’s Chakan plant in Maharashtra and the company has sold about 1,25,000 units so far.
“The decision to emphasize our sales activities in South-East Asian distribution network is the logical next step in our long term oriented strategy. It supports our presence in the price sensitive Indonesian market by using our synergies from our strong alliance with Bajaj, Hubert Trunkenpolz, CSO, KTM AG.
Bajaj has successfully established KTM brand in India with an exclusive channel of 250 KTM stores. For Bajaj, this agreement to distribute sub 400cc bikes in Indonesia is a major step forward,” said Rakesh Sharma, International Business president, Bajaj Auto.
The existing business partnership with the current importer P T Jaya Selaras Sejahtera will remain but will now fully focus on model range above 400cc.