The Hindu : Business : KTM Power Sports ties up with BAL

Online edition of India's National Newspaper
Tuesday, Nov 06, 2007
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KTM Power Sports ties up with BAL

Special Correspondent

MUMBAI: Bajaj Auto Ltd. (BAL) on Monday announced wide ranging co-operation agreements with KTM Power Sports AG, the second largest European sport motorcycle manufacturer. BAL, through its 100 per cent Netherlands subsidiary, Bajaj Auto International Holdings BV, has acquired an interest of 14.5 per cent in KTM Power Sports, said a BAL statement.

The KTM group provides the knowhow for the joint development of high-efficient water-cooled 4-stroke engines (125 cc and 250 cc), which provide KTM the basis for street motorcycles in the new street entry segment. The joint developments will also be available as basis for Bajaj products.

Through the cooperation with Bajaj, KTM will 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. The sourcing for the production and the assembling of these new models will happen in India and Bajaj will handle the distribution of KTM products in India and countries in Southeast Asia. For KTM, this cooperation opens up the Asian region and provides new opportunities for the sales of the entire KTM-product portfolio.

Rajiv Bajaj, CEO, BAL said, “KTM’s sharp brand positioning, differentiated designs, and hyper performance have inspired Bajaj to invest in this participation.”

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