Bajaj and KTM to deepen their alliance with a new 2.0 phase that has been coined, with strategic details yet to be revealed.
The next phase of Bajaj-KTM’s 12-year alliance will be deepened by leveraging future mobility opportunities across the world. This will be the first step that will unfold progressively in the coming weeks to broaden and deepen this partnership between KTM and Bajaj Auto.
This tie-up between the two companies has made KTM the world’s biggest premium bike manufacturer, beating Harley-Davidson, and has benefitted Bajaj from technology sharing and becoming the sole manufacturer of KTM (and soon Husqvarna) bikes outside of Europe with exports reaching the US, Japan and South Asia.
Bajaj Auto International Holdings BV is in talks for transferring its 48 percent stake in KTM AG to the promoter company KTM Industries AG. KTM-Bajaj 2.0 will be the basis for developing strategies and technologies.
The success of the KTM-Bajaj partnership has become an example for many premium brands that are seeking to grow their business in the emerging markets through more competitive product development and manufacture, an example for this would be BMW engaging with TVS Motor Company to build performance bikes in India.
Two in every five motorcycles of KTM were manufactured by Bajaj in 2017 and that year was a record year for KTM with the highest sales in units and the highest turnover in the history of the company. It sold 2,38,408 units of motorcycles globally (17 percent growth) and achieved a turnover of 1.33 billion Euros (17 percent growth). Profit after tax was at 78.9 million Euros (Rs. 600 crores)(10 percent growth).
During 2017, Bajaj manufactured 98,132 units of KTM branded bikes, out of which 46,321 units were sold through the Pro-Biking network in India and 53,211 were exported worldwide.
KTM Bajaj Alliance
– Bajaj Auto International Holdings BV is in talks for transferring its 48 percent stake in KTM AG to the promoter company KTM Industries AG
– KTM-Bajaj partnership has become an example for many premium brands seeking to grow their business in the emerging markets
– Bajaj has benefitted from technology sharing and becoming the sole manufacturer of KTM (and soon Husqvarna) bikes outside of Europe
Source – MoneyControl.com
