Following a partnership between Bajaj Auto and KTM, formed in 2007, Bajaj Auto Limited is seeing increased sales. The shift from scooters to motorcycles has also proved to be a significant step taken by the company while recognition in global markets has been a highlight.
Back in 2007, KTM AG was in the red. It is at this time that Bajaj Auto bought 14.5% stake in this company. Not many expected the partnership to be a success. But the KTM-Bajaj partnership has flourished not only in India, but globally.
KTM’s market capitalisation today stands at €1.16 billion (or Rs 8,120 crore), this means that the Rs 1,219 crores Bajaj Auto invested (in buying 48% stake in KTM between 2007 and 2012), has now more than tripled to 3,896 crores.
All these numbers and growth have only been possible thanks to their increase in sales. Posting record growth in sales every year, KTM is aiming to sell 180,000 units this calendar year (up from 158,760 units they sold in 2014, almost double of what the company sold 10 years ago).
Of the total motorcycles produced last year, 101,717 units were produced at their plant in Mattighofen, Austria; while a major chunk of the remaining motorcycles were produced at Bajaj Auto’s plant in Chakan, Pune.
Today, Bajaj Auto produces KTM Duke 125, Duke 200, Duke 250, Duke 390, RC 200, RC 250 and RC 390 here in India. These KTM motorcycles are only made at Bajaj’s plant in India, and no where else in the world. And from here, they are also exported to across the globe.
In India, Bajaj sells the 200 and 390 versions of both Duke and RC, the latter was only introduced in September last year. Together, the Duke and RC motorcycles from KTM has helped Bajaj increase their market share in the 200-400 cc segment from just 10% to 59% in 2014.
Sales of KTM branded motorcycles in India have increased at a record growth. In 2013, KTM sales in India were at 11,000 units, this increased to 23,000 units in 2014; and is expected to grow even further this year (thanks to the new RC twins).
The Bajaj Auto KTM alliance has proved beneficial for both companies. The duo are now working on their recently bought Husqvarna brand. Though the plans are not disclosed, new motorcycles are being planned for launch (in India as well as globally), which will increase volumes even further for the two companies.