Bajaj-KTM very close to add new brand; could be Ducati

Bajaj and its Austrian partner, KTM might buyout the legendary Italian motorcycle brand, Ducati in the next two weeks. 

Bajaj’s CEO, Rajiv Bajaj, during its 10th annual general meeting spoke about the company’s intention of adding a second brand to the Bajaj-KTM alliance. He went on to say that the official announcement is likely to happen in one to two weeks. Since Volkswagen showed its intention to sell Ducati, a lot of manufacturers including Hero MotoCorp and Royal Enfield were rumoured to show interest in this purchase. In fact, Harley-Davidson was also looking at this purchase. 

It looks like Bajaj and KTM wants to strengthen and increase its market share with the Ducati models. Currently, Bajaj takes care of the mass market end whereas KTM makes premium fast bikes. None of these companies have developed motorcycle range that isn’t just premium but also very desirable and has wide range of bikes. Ducati fits in to this perfectly. 

“We are very close to finalising an alliance, it will take a week or two to announce. If it happens it will open up enormous possibilities because that is a brand that is the format of products that is even more suitable. So if KTM and Husqvarna can do half a million motorcycles a year believe me they can do a million motorcycles together,” said Rajiv Bajaj.

“We stand before a very promising opportunity and hopefully you will read it in the papers very soon. That is why we need the money (reserves) because if we have to build Husqvarna and this second brand then we will need this money”, he added.

souce : moneycontrol