Pune: Bajaj Auto (BAL) has invested Rs 300 crore in 560 million Euro-KTM Power Sports AG, the second largest European sports motorcycle manufacturer, for picking up 14.5% stake. The investment in the Austrian company was done through BAL’s whollyowned subsidiary in Netherlands Bajaj Auto International Holdings BV.
This is part of the wideranging co-operation the two companies have announced on November 5 to co-develop a range of 125 cc and 250 cc engines which will go into both Bajaj and KTM motorcycles in the street entry segment. These jointly developed products, including vehicle platforms, would be manufactured by Bajaj Auto at its Chakan facility for both Bajaj (existing and new) and new KTM motorcycle brands.
“KTM’s sharp brand positioning, differentiated designs and hyper performance have inspired Bajaj to invest in this participation,” said Rajiv Bajaj, MD, BAL. As per the agreement, Bajaj Auto will also take over the distribution of KTM products in India and other countries in South-East Asia. So, the cooperation will open up the Asian region for KTM where it is not currently present and help create new opportunities for the sales of its entire product-portfolio, while providing Bajaj access to the European market through KTM’s 720 dealerships in the continent.
KTM’s knowhow on highefficient water-cooled 4-stroke engines (125 cc and 250 cc), which provide the basis for its new street entry segment, would also be available as basis for Bajaj products.
“We are moving more and more powerful bikes. So KTM’s technology was complementary to us and does not create any conflicts,” said Amit Nandi, BAL GM (marketing). Water-cooled technology offers a more efficient power-weight ratio allowing smaller bikes to have higher power, compared to the air-cooled and oil-cooled technologies that BAL currently employs.