The Hindu Business Line : Bajaj, KTM Power to jointly build bikes

European sports motorcycle manufacturer KTM Power Sports AG and Bajaj Auto Ltd, manufacturer of two and three-wheelers, have announced a wide ranging co-operation. According to an official release from BAL, the KTM Group would provide the know-how for the joint development of water-cooled four stroke engines (125 cc and 250 cc) which provide KTM the basis for motorcycles in the new street entry segment.

Street product line

The joint developments would also be available as basis for Bajaj products. Through the cooperation with BAL, KTM would extend its product portfolio for the future with a 125-cc street product line, in addition to the present 1190-cc, 990-cc and 690-cc platforms developed and manufactured in Austria.

With the introduction of the new EU driving licence, which allows riding of 125-cc motorcycles with a car driving licence in all EU member States, KTM will be in a position to offer innovative premium entry models in the street segment, it noted. The sourcing for the production and the assembling of these new models in the street entry segment would be in India.

The release noted that BAL would takeover the distribution of KTM products in India and in South-East Asia. The publicly listed Bajaj Auto Ltd has emphasised the strategic importance of these projects through the acquisition over the capital markets, through its 100 per cent Netherlands subsidiary — Bajaj Auto International Holdings BV — of an interest of 14.5 per cent in KTM Power Sports AG.

KTM Power Sports AG is a manufacturer of power sports vehicles. With products in Motocross, Supermoto, Enduro classes and with on roadbike products such as Super Duke KTM is a strong brand in Europe and the US. With more than 1,930 employees, the KTM Group earned revenue of €566.1 million in 2006-07. Over 23 sales subsidiaries distribute KTM products to their 1,400 independent KTM dealerships worldwide.