Bajaj-KTM partnership of 12 years, is set to enter its next phase, called KTM-Bajaj 2.0. No in-depth details have been revealed as on date, but will be revealed in the weeks ahead.
The first phase of partnership has done wonders for both the brands. KTM has become the largest premium bike brand in the world, replacing Harley Davidson. While Bajaj has become the largest motorcycle exporter in the country.
The alliance has also benefited Bajaj Auto Limited in terms of technology sharing. KTM’s advanced tech is being used in some way by Bajaj, most likely under the brand Pulsar and Dominar. Bajaj has also become the sole producer / exporter of KTM motorcycles under 400cc. Soon they will also take care of producing and exporting of Husqvarna 401 twins.
Bajaj Auto has a stake of 48% in KTM AG via their Netherlands based fully owned subsidiary called Bajaj Auto International Holding BV. Now this subsidiary is in the process of transferring its stake from KTM AG, to its promoter company KTM Industries AG.
As per a report by Money Control, this transfer of shares will result in KTM Industries AG’s stake in KTM AG become 51.7%. It has not been revealed how much will be Bajaj’s stake in KTM Industries AG after the equity transfer.
With this new alliance, there will be cross development of strategies and technologies which will help in enhancing future mobility opportunities, for both brands globally. This will also strengthen the bond of partnership.
The success of the KTM Bajaj alliance can be seen in terms of results going back to 2017 where every two in five bikes of KTM were manufactured by Bajaj Auto while in terms of sale, KTM clocked the highest sale in calendar year 2017 with 2,38,408 units sold, growth of 17 percent along with turnover of 1.33 billion euros (Rs 10,400 cr), growth of 17 percent.
There is also the Triumph Bajaj alliance in which motorcycles in the 350cc to 600cc are targeted. Though this alliance was signed in August 2017, the details are currently being worked out. All in all, Bajaj surely has some exciting and challenging times ahead.
