Bajaj Auto and KTM AG celebrated ten years of doing business together with Bajaj Auto MD Rajiv Bajaj and KTM CEO and chairman of executive board Stefan Pierer chalking out plan for the next ten years.
Bajaj Auto and KTM AG celebrated ten years of doing business together with Bajaj Auto MD Rajiv Bajaj and KTM CEO and chairman of executive board Stefan Pierer chalking out plan for the next ten years. The two finalised designs for the next KTM bike, the 390cc Adventure model, for India.
Bajaj has taken the KTM brand to the Indonesian market. It has successively achieved a foothold in Indonesia with demand outstripping shipments. The company expects to sell between 5,000 and 10,000 units in FY18 in Indonesia, which is a backyard for Japanese brands.
The KTM bike has 80% market share of the premium motorcycle brand segment in India and has put 1 lakh KTMs bikes on the Indian road since inception.
The brand has witnessed a growth at a CAGR of 20% in the last four years. In FY17, Bajaj looks to sell 1,20,000 KTMs. Bajaj on Thursday launched two new KTM motorcycles the RC 390 and RC 200.
According to Rajiv Bajaj, when many of the joint ventures in the industry have fallen apart, Bajaj and KTM have managed to build a sustainable relationship and is continuing to grow. “We were so different that we complemented each other well,” said Bajaj.
“KTM as a company was struggling but had a good brand and needed money so we took that leap of faith,” said Bajaj. The company invested in KTM in 2006 and now owns 49% stake. KTM started manufacturing the 125cc to 400 cc range at Bajaj Auto plant in Pune which partly contributed to its revival.
KTM also manufactures 400cc to 1250 cc range in Austria. In 2016, KTM crossed the milestone of manufacturing 2,00,000 motorcycles and of this around 70,000 units were made in India, with 98% localization including the engine.
Of this 37,000 units were sold in the India while remaining were exported to US, Europe, Japan, Latin America and South East Asia. KTM AG is also sourcing from Bajaj’s vendors for their global needs.