Bajaj-KTM partnership to be extended to Indoensia

In its latest filing to the stock exchanges, Bajaj Auto has revealed that its partnership with KTM for selling sub-400 cc motorcycles would be extended to Indonesia as well. The Bajaj-KTM arrangement in Indonesia will be similar to the existing arrangement in India wherein the KTM-branded outlets are managed by Bajaj Auto.

The association will only involve made-in-India motorcycles (sub 400 cc) such as the Dukes and RCs. Sales of KTM’s larger capacity bikes in archipelago will continue to remain under the purview of the existing official Indonesian seller, PT Jaya Selaras Sejahtera.

KTM Duke 390 - rushlane 03 side
Sales of KTM’s sub-400 cc motorcycles in Indonesia will be managed by KTM-branded stores that are operated by Bajaj.

Bajaj Auto’s long standing relationship with KTM in India has helped the latter create a strong foothold in the nation’s compact sportsbike segment. The Austrian two-wheeler major is hoping to produce a similar result in Indonesia which is the largest two-wheeler market in South East Asia. KTM would use its global distribution network to ship its sub-400cc bikes from India to Indonesia but the day-to-day operations of the outlets would be managed by Bajaj.

2016 KTM RC 390
The partnership is expected to result in significant cost savings for KTM and increased business for Bajaj Auto.

This synergy is expected to save significant cost for KTM while giving Bajaj more business in Indonesia. Bajaj Auto currently owns 48% of KTM AG.

Via – PTI

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