KTM & Bajaj Auto to extend partnership in Indonesian market

Bajaj Auto and KTM have had a fruitful venture in the Indian market and they have sort of revolutionised the affordable performance segment of motorcycles with their RC and Duke range of bikes. In fact, Bajaj Auto also has a 48 per cent stake in the Austrian bikemaker and the sub 400cc KTM motorcycles are manufactured by Bajaj at its plant in Chakan on the outskirts of Pune and exported globally. Both the manufacturers further strengthened their association as they announced an arrangement which involves KTM-branded Duke and RC motorcycles up to 400cc displacement being distributed in the Indonesian market through a chain of KTM dealerships to be managed by Bajaj Auto. Indonesia is the largest two-wheeler manufacturer in the South East Asian region and both the manufacturers are targeting to replicate the same success achieved by them in India. 

Speaking about the new association, Hubert Trunkenpotz, chief sales officer, KTM AG said, “The decision to emphasise our sales activities in the South Asian distribution network is the logical next step in our long term oriented strategy. It supports our presence in the price sensitive Indonesian market by using synergies from our strong alliance with Bajaj.” 

It is most likely that the KTM motorcycles will be exported from India in CKD forma and assembled in India so as to keep the import duty as low as possible thereby pricing the KTM motorcycles aggressively. The release also announced that, P T Jaya Selaras Sejahtera will continue to remain the official importer for KTM motorcycles in Indonesia but will shift their focus on 400cc plus displacement motorcycles.