KTM a global competitor to Harley: Bajaj Auto MD

By: | Published: July 29, 2016 5:55 AM

They have been working on this for the last one year and are deciding on which product to take to this market, he added. Bajaj Auto and KTM entered an agreement in March this year to establish the KTM brand in Indonesia, the largest market in Southeast Asia.

New KTM RC390They have been working on this for the last one year and are deciding on which product to take to this market, he added. Bajaj Auto and KTM entered an agreement in March this year to establish the KTM brand in Indonesia, the largest market in Southeast Asia.

The KTM brand is emerging as a serious contender to the Harley Davidson motorcycles in the global market. The brand is jointly owned by Bajaj Auto and KTM AG of Austria. The gap between KTM and Harley Davidson bikes in the global markets is not so wide as it existed earlier, said Bajaj Auto MD Rajiv Bajaj.

Bajaj said KTM is now at the number two slot. In 2015, KTM sold 1.81 lakh bikes while Harley Davidson sales were at 2.66 lakh. “Ten years ago, KTM sold 65,000 units. This year, KTM will have sales in excess of 200,000 units and further reduce the gap with Harley Davidson,” Bajaj said. Every third KTM sold across the world in the US, Japan, France, Australia and Brazil is made by Bajaj Auto, he added.

The KTM is a niche super-sports bike and Bajaj says it has an 80% share of this market in India. A lot of this growth for KTM this year onwards will come from their joint foray into the emerging markets in the south. Bajaj and KTM have decided to go together in the ASEAN markets and will expand the KTM brand into the emerging markets, Bajaj said.

They have been working on this for the last one year and are deciding on which product to take to this market, he added. Bajaj Auto and KTM entered an agreement in March this year to establish the KTM brand in Indonesia, the largest market in Southeast Asia.

Bajaj Auto holds 48% stake in KTM AG of Australia through Bajaj Auto International Holdings, a 100% subsidiary based in the Netherlands. The company has invested R1,219 crore and KTM has a market cap of R10,020 crore. Bajaj is planning a blitzkrieg of KTM products this year, including bringing the Husky brand to India. Last year, Bajaj Auto manufactured 69,532 units of the KTM Duke at its Chakan plant. Of this, 30,362 units were sold in the domestic market through the Pro-Biking network, while 38,926 units were exported to KTM and KTM distributors. In 2015, KTM motorcycle sales grew 32%.

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