KTM to enter Indonesian market with Bajaj

KTM and Bajaj have announced their plans to extend their joint venture to the Indonesian market. Under this arrangement, Bajaj will set up and manage the dealership network in Indonesia to sell sub-400cc KTM motorcycles, exported from India. 

In recent years, KTM’s association with Bajaj Auto has given it the edge to help compete against other major motorcycle manufacturers. Bajaj’s expertise in low-cost manufacturing technologies has helped KTM enhance the productivity, while keeping the prices very competitive. Indonesia is widely regarded as the biggest two-wheeler market in the South Asia region. This decision to enter Indonesia should help the company achieve its target of touching 2.5 lakh units in annual sales by 2020.

While a majority of KTM models are manufactured in the company’s main factory in Mattighofen, Austria, the small capacity Duke and the RC models are produced at Bajaj’s factory in Chakan, Pune. These two models are targeted at emerging markets and are the biggest contributors in terms of volume. Sales of bigger KTM motorcycles in Indonesia will continue to be managed by the current official importer of KTM bikes - PT Jaya Selaras Sejahtera. 

Speaking about their decision, Hubert Trunkenpolz, CSO, KTM AG said in a company release: “The decision to emphasise our sales activities in the South-East 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.”