Austrian premium motorcycle maker KTM partnered with Bajaj Auto in 2007 and has grown remarkably. in 2013-14 fiscal, KTM saw 120% growth owing to success of Duke 200 naked bike, while growth of that segment has recorded only 40%. KTM is currently Europe’s largest motorcycle manufacturer. The company aims to produce over 1 lakh units through Bajaj, at Chakan plant, by 2018.
Stefan Pierer, CEO of KTM, mentioned to ET that tie-up with Bajaj was key for KTM to become a global brand, especially to penetrate deeper into emerging markets. He added that companies like Bajaj Auto are instrumental in producing smaller displacement bikes at competitive pricing; which is KTM’s key to global expansion. In short term, KTM is focussing on emerging markets like Indonesia, Thailand, Philippines, and is set to enter Cambodia and Vietnam shortly.
In 2014, KTM global including Indian base will produce 1,40,000 units. USA being KTM’s biggest market will receive about 25,000 units and Germany with get 12,000 units. Next year KTM is targeting to sell about 1,60,000 units and in 2020 the company aims at 2,50,000 units per annum.
In India, KTM currently has market share of 30% in the specific motorcycle segment and RC bikes are expected to contribute to achieving higher share. Sales of 16,000 to 17,000 units is the target for KTM in India this year and RC bikes are expected to sell at least half as much as Dukes do.
Mr. Pierer mentioned that RC bikes are benchmark to the Japanese and that KTM would overtake Japanese bike makers such as Honda, Yamaha, Kawasaki and Suzuki in next couple of years.
KTM has a 250 cc motorcycle in the pipeline for India in 2015. The Austrian bike maker is working on introducing an adventure bike in India, most likely via CKD route.
Investment plan of KTM includes 7-8% of net sales into products and R&D, which is their annual average. The company, which is a billion dollar entity (translating to about $80 million), splits about half of worth into product development and rest into international racing and marketing.
Via – Economic Times