KTM AG Enters Into A Joint Venture With CFMoto In China

Austrian bike maker KTM AG has announced that it has entered into a joint venture with Chinese two-wheeler maker CFMoto in order to improve the former's presence in the market. Both KTM and CFMoto have been long term partners and the move will see both companies co-develop product for China as well as for markets globally. The joint venture is called CFMoto-KTMR2R', wherein CFMoto holds a majority stake of 51 per cent while KTM owns the remaining 49 per cent.

KTM has been retailing its motorcycle range in China in collaboration with CFMoto for years now. The latter is responsible for the assembly and distribution of the orange Austrian motorcycles in the market. CFMoto, on the other hand, has been developing a variety of two-wheelers and all-terrain vehicles since 1989 and has partnerships with over 1500 companies.

The move is expected to help KTM expand its presence in China and also address the market needs with a diverse new range of products. The alliance will not only help KTM's profits within China but also on a global scale as well. The manufacturer has been forging alliances with manufacturers globally which has helped achieved better penetration in newer markets. With respect to India, home-grown bike maker Bajaj Auto owns 48 per cent stake in KTM AG, which has helped provide access to the company's R&D.

Expanding further in the Indian market, the Bajaj-KTM alliance is now looking to introduce the Husqvarna brand, acquired by the latter from BMW in 2013. The Husqvarna brand has two retro-styled motorcycles based on the Duke motorcycle, which will be produced in India and shipped globally. The Husqy bikes will be made-in-India at Bajaj Auto's Chakan facility.