KTM AG ties up with MV Agusta

KTM AG (part of the Pierer Mobility group) has officially inked a deal with MV Agusta, acquiring a 25.1% stake in the Varese-based marque by way of a €30 million capital increase. This deal has also entailed some structural changes within MV Agusta, with two senior management personnel from KTM now part of the Board of Directors.

This deal effectively enables MV Agusta to leverage KTM’s larger supply chain network. The Austrian marque, in turn, would take over the purchasing operations for the Italian company. This should help MV Agusta (a relatively small and financially troubled company) optimise its costs due to KTM’s relatively larger scale of operations. This strategic alliance will also pave the way for MV Agusta to partly retail its products through Pierer Mobility’s worldwide distribution network.

Timur Sardarov, CEO of MV Agusta Motor S.p.A. says, “The principal goals of our alliance will be the consolidation of our core business and the production of high-performance motorcycles in the premium segment. The agreement will strengthen our brand in a complex and challenging marketplace.”

Given that Bajaj Auto owns a 49.9% stake in PTW Holding AG, the parent company of Pierer Mobility, it is not entirely out of the realm of possibilities, especially considering that the Indian two-wheeler marketplace is slowly but surely warming up to the idea of larger capacity motorcycles.