Austrian motorcycle manufacturer KTM has formed a new joint venture with Adventure Cycle Philippines, to form KTM Asia Motorcycle Manufacturing. Adventure Cycle Philippines is part of the AC Industrial Holdings Inc, a member company of the Ayala Group, which has diversified interests in real estate, infrastructure, manufacturing, telecom and other sectors. The Philippines plant will have a key role in KTM's expansion into Asia, and more specifically the Association of South East Asian Nations (ASEAN). Initial production capacity is pegged at 6,000 units, which will be increased to 10,000 units.
KTM plans to roll out four key models from the Philippines plant - the KTM 200 Duke, RC 200, 390 Duke and RC 390 and these bikes will be exported to nations under the ASEAN umbrella as well as China. These models are currently manufactured by Bajaj Auto at its plant in Chakan, near Pune. Bajaj owns 48 per cent of KTM, now Europe's largest motorcycle manufacturer.
"It seems like a frequent message from us but the opening of this new plant at Laguna and in the Philippines is another fantastic example of how we are managing to take the KTM brand to new corners of the world and touch fresh markets and riders; it's a really exciting time of progression for the company. We want to thank the efforts of KTM Asia Motorcycle Manufacturing Inc. for this latest chapter in our story and it is important for us that we have the right - and best - presence in a part of the world where the motorcycle is such a prominent feature of everyday life. We're very keen to see how the facility will develop," said Hubert Trunkenpolz, president of KTM Asia Motorcycle Manufacturing.
KTM Asia Motorcycle Manufacturing, Philippines
The ASEAN region is proving to be a significant growth centre for the global motorcycle industry. Ducati and Triumph already have plants in Thailand, from where these bikes make their way into India and other markets in Southeast Asia. Recently, Harley-Davidson also announced the setting up of a plant in Thailand, to make prices of bikes more competitive in these markets.
