With the launch of KTM, an Austrian brand in India, Bajaj Auto is replacing its ‘Probiking' sports bike outlets.
The 34 new KTM stores will also retail the Kawasaki Ninja 250R and 650R (which Bajaj distributes in the country), though the top-end Pulsar 220 and 200 bikes will now be sold through Bajaj's outlets. The Indian firm bought a stake in KTM five years ago, which now stands at around 40 per cent.
“We will continue to distribute the Ninjas. When we first invested in Probiking in 2003, we knew that one day we would need exclusive distribution for the premium market,” Mr Rajiv Bajaj, Bajaj Auto's Managing Director said.
He added, “At that time, we had no idea what that brand would be. What Pulsar was 10 years back, KTM is today.”
Street bike
The first KTM model, the Duke 200 street-bike, was launched on Tuesday at an introductory price of Rs 1.17 lakh (ex-showroom, Delhi). This features a 200cc liquid-cooled engine, putting out 25 BHP. Other models, such as the Duke 350 will be launched in a year, while a third 125cc model, which is only sold in Europe, may also be considered for the home market.
Exports
KTM may also soon sell top-end Bajaj models, such as the Pulsar range, through its outlets in Europe and a few emerging markets. Exports for KTM already started in 2011.
“We're looking to sell Bajaj models through our dealers – this could happen in about two years. Europe is though not a market for the cheaper models,” Mr Stefan Pierer, CEO of KTM-Sportmotorcycles AG said.
A lot of KTM technology is now flowing into Bajaj models, beginning with the new Pulsar (which is due soon).
KTM plans to make most of its smaller displacement bikes at Bajaj's Chakan plant, while its bigger bikes will be made at its plant in Austria. With an annual capacity of 30,000 units at Chakan for KTM, two models are being manufactured at present — the Duke 200 and 125.
In 2011, KTM exported 11,000 units to markets like Europe and America from India. This is expected to touch 1.5 lakh units in three years, Mr Pierer said.
In India, it expects to sell 2,000 units a month making the country its biggest market by 2013, overtaking the US. Last year, KTM sold over 81,000 units globally.