KTM plans to make Husqvarna in India

KTM-owned Husqvarna, the European motorcycle brand, famous for its off-road and dirt bikes, is looking at using India as a manufacturing hub for its motorcycles. The Austrian bike manufacturer KTM, plans to develop on-road bikes of Husqvarna for global markets with its partner Bajaj Auto at Chakan near Pune. Bajaj Auto holds a 48 percent stake in KTM.

The plan of KTM is to initially source engines and other components from India for  assembly of  bikes at its facility in Austria which will be sold in Europe and the US from 2017.

Thereafter, products would be extended to emerging markets, including India and the production of these bikes could happen in India as well.

KTM chief executive Stefan Pierer said, “The focus was previously on off-roaders.

Now we are developing on-road models which are partly based on the engine platforms we are doing together with Bajaj. In model year 2017, we will launch the first models in Europe and then in the US. We are looking at how it works and then rolling out globally, coming basically back to India.”

The new Husqvarna motorcycles would use 125cc and 390cc engines, similar to the ones KTM is currently using in its products. “We are getting engines and components for the models from Chakan for assembly in Austria initially. Later on, India could be part of the production plan.

It is a step-by-step process,” Pierer said.

KTM has accrued the benefits of low-cost production in India, which has emerged as a, important base for exporting sub-500cc bikes which are 125cc, 200cc and 390cc bikes for KTM. “In my opinion, Bajaj is the most efficient producer and it helps us price our KTM entrance products very competitively in emerging markets. Together we could achieve very good quality levels on the products we sell globally,” Pierer said.

Source: ET