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KTM Indonesia to bank on Bajaj’s assistance to expand business

 
KTM Indonesia to assemble bikes locally

A formal announcement of the arrangement between Bajaj and KTM for the Indonesian market is expected to come soon.

KTM Indonesia which currently imports its bikes and retails it through its local distributor would alter its business model to take advantage of Bajaj’s better established presence in the market, reports CNBC TV18. PT Bajaj Auto Indonesia, a subsidiary of Bajaj Auto, has been operating in the Indonesian market for quite some time now and owns a CKD assembly plant which would now be used by KTM as well.

The Indian automaker had set up its operations in Indonesia with the help of its partner Kawasaki and now it will help KTM do the same. Since Bajaj owns 48% of KTM, this move would be beneficial for both the brands. In addition to making use of Bajaj’s assembly plant, KTM Indonesia would also benefit from its partner’s existing distribution, dealership and after sales networks.

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KTM Indonesia can be more competitive by assembling its products at Bajaj’s CKD plant.

Also read – 2016 KTM RC 390 with slipper clutch unveiled

KTM is also reportedly planning to enter the Iranian with Bajaj’s support. The country’s trade sanctions are about to be lifted, making it a lucrative export market for makers of affordable small and medium displacement motorcycles. Bajaj and KTM could use the same apparatus to export their Chakan-made products to Iran. CNBC TV18 reports that Bajaj is set to become the first Indian two wheeler maker to venture into Iran.

2016 KTM RC 390 – Photos

Via – Moneycontrol.com

 

About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

Email - nithyanandh@rushlane.com