KTM Asia production will be doubled for making room for Husqvarna bikes by the end of 2019.
It has been 10 successful years that KTM and Bajaj Auto have collaborated and the results have been fruitful till now. With every passing day, KTM bikes became one of the most favourite pair of wheels for the Asian youth thus providing Bajaj Auto with an unmatched market value. Now, the coming days of this partnership will be highly dedicated to the introduction, manufacturing and selling of Husqvarna bikes in Asia. For this, KTM has planned to double its manufacturing capacity to 1.8 lakh units per annum in Asia which is a part of version 2.0 of the Bajaj-KTM partnership plan.
In a recent statement, KTM CEO Stefan Pierer said that the company is planning to sell over 4 lakh units globally in the coming years and about 1.8 lakh units will be produced at Bajaj’s Chakan plant. The Husqvarna motorcycles will also be produced at this plant by the end of 2019 and Bajaj will have two more manufacturing facilities in the coming years.
Asia is the production base of around 40 percent of KTM bikes sold globally which accounts for 95,000 to 1 lakh units. Also, the country is about to become the largest market for these Austrian bikes as sales of over 50,000 units a year have been predicted. When KTM and Husqvarna will start their Asia operations, the pair might have the potential to garner revenue of about 3000 crores for Bajaj Auto. KTM is expected to end 2017 with a turnover of Euro 1.5 billion which is anticipated to rise up to Euro 2.5 billion by the end of 2019.
A major part of Husqvarna motorcycles lying in the 125-400cc segment will start getting manufactured at Bajaj Auto’s facility by 2019 and the products are likely to be launched by 2020 in Asia. Since companies like Honda, Suzuki and Yamaha fetch 30 percent of their global sales from Asia, Husqvarna too may enjoy good days when it comes to our shores.
KTM Asia Production
– KTM plans to double production capacity in Asia
– KTM and Bajaj look forward to dedicating version 2.0 of their plan for Husqvarna bikes
– Production of a major part of 125-400cc Husqvarna bikes will start in Asia in 2019
Source – Economictimes.com