The partnership between the two brands will spawn off new products for the international markets; KTM to hold 49 percent stake
Austrian manufacturer KTM has recently entered into a joint venture with CFMoto in order to step up its business game in China. The partnership has been named as CFMoto-KTMR2R and KTM will hold a stake of 49 percent. The majority of equity will be with CFMoto that has been the partner of KTM for many years now.
For those not in the know, CFMoto was responsible for the assembling and sales of KTM bikes in China. The Austrian manufacturer clarified that the joint venture will not only be responsible for assembling and distribution but will also help the two companies develop new products for the international markets.
In India, KTM has partnered with Bajaj Auto for the sales and manufacturing of its motorcycles. The Austrian manufacturer’s sub 400cc products are manufactured at Bajaj’s production facility in Chakan near Pune. Bajaj holds a stake of 48 percent in this JV.
A few weeks back, Bajaj Auto had announced its partnership with Husqvarna for the manufacturing of the latter’s bikes in India. The company’s Vitpilen 401 and Svartpilen 401 will be made at Bajaj’s factory in Chakan. Both these products come based on the KTM 390 Duke. Besides selling these bikes in India, Bajaj will also export them to Indonesia.
Expect the Vitpilen 401 and Svartpilen 401 to hit dealerships at prices ranging between Rs 2 lakh and Rs 3 lakh. Just like the KTM motorcycles, Bajaj Auto will be responsible for handling the sales network when it comes to Husqvarna bikes.
In other news, Bajaj has also joined hands with Triumph Motorcycles for the development of mid capacity bikes in India. For this, the company is even looking forward to set up a separate production facility near its existing Chakan plant. This will give the ease to the manufacturer in terms of logistics and other parameters to operate.
The Bajaj-Triumph joint venture is expected to spawn off sporty middleweight motorcycles at attractive price points that would certainly increase the number of decent options for the Indian buyers in the respective segment. The first product out of this JV will likely roll out before 2020.