KTM to Make Husqvarna Motorcycles at Its Indian Facility

Husqvarna Motorcycles is one of the most respected brands in the world of motorsports. The brand, which is a subsidiary of KTM, is expected to develop and produce bikes at the Bajaj facility in Chakan, Pune from 2016. The engine and components produced and developed in India will then be shipped and assembled at the KTM headquarters in Austria, and then sold across the globe.

KTM also produces its Duke 125, Duke 200 and Duke 390 at Bajaj's Chakan facility and exports them to over 70 international markets. Where the Duke 200 and Duke 390 are being sold in the Indian market too, the Duke 125 is made only for the international markets.

The first batch will be dispatched to the international markets from the Chakan facility sometime in early 2017. Once the production gains momentum, Husqvarna bikes are then expected to be launched in emerging markets like India.

This move will mark the beginning of a new era in the Indian motorcycle scenario as with the sub-segregation of the Indian motorcycle market, more and more motorcycle manufacturers are heading to Indian shores to test their waters.

In an interview with ET, Stefan Pierer, KTM head, said, "The focus was previously on off-roaders. Now we are developing on-road models which are partly based on the engine platforms we are doing together with Bajaj. In 2017, we will launch the first models in Europe and then in the US. We are looking at how it works and then rolling out globally, basically coming back to India. We are getting engines and components for the models from Chakan for assembly in Austria initially. Later on, India could be part of the production plan."

The specifications of the new engines Husqvarna will develop at the Chakan facility are still unknown, but it is expected that it might use KTM's existing engine line-up to develop the kind of motorcycles Husqvarna is known for. The cost effectiveness will come naturally as the mammoth production capabilities of Bajaj will help KTM and Husqvarna to keep the production cost low.