Bajaj KTM buys BMW Husqvarna for undisclosed sum

KTM, the Austrian motorcycle firm which is also part owned by Bajaj Auto, India’s premier two wheeler manufacturing company, has purchased BMW’s motorcycle brand, Husqvarna.

Bajaj KTM buys BMW Husqvarna for undisclosed sum (9)BMW purchased Husqvarna July 2007, for a sum of €93 million (INR 672 crores or $126.24 million). They also invested heavily in R&D facilities and in the revamping of product architecture. For 2012, Husqvarna sold 10,751 motorcycles globally, an increase of 15.8% compared to 2011 sales figures. BMW sold Husqvarna to Bajaj KTM in order to focus their concentration on BMW Motorrad.

On the other hand, KTM sales for 2012 stood at 107,142 units for 2012, and now with Husqvarna, it is quite clear that they want to expand their business even more. Bajaj Auto holds a 47% stake in KTM, and India helped boost KTM sales last year. Pierer Industrie holds the 51% controlling stake in KTM. In a telephonic interview with Bloomberg, Pierer revealed that Husqvarna did not fit in BMW’s long-term plan. BMW, which is the largest luxury car maker in the world, is facing increase in competition from Audi and Mercedes Benz, who are both aiming to snatch the No 1 spot from BMW.

This takeover will be noteworthy for Indian part owner Bajaj Auto as well. Motorcycle fans who love the kind of motorcycles Husqvarna manufactures, can expect to see them on Indian soil very soon.

The current Husqvarna lineup includes a wide range of off road bikes besides street bikes and supermoto bikes. The range includes the Nuda 900 and TR650 street bikes besides SMR 630, 511, 125 and SMS 125 range of supermoto bikes. The company’s ranges of mini cross bikes and cross country bikes include TXC and TE Enduro.

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