Bajaj Auto and KTM have signed an agreement for jointly developing 125 cc bikes, to be built at Bajaj’s Chakan plant for exports to European market under KTM brand name. The first bike to roll out from this JV will land in Europe this year and subsequently in Asia next year. Bajaj will distribute KTM products in other counties as well including Sri Lanka, Bangladesh, Indonesia, South Africa and Brazil. The name of the 125cc bike is yet to be decided and the price of this machine is going to be north of Rs. 1 lakh.