Husqvarna Motorcycles to make India its production hub

Having enjoyed considerable success since its introduction in India, Austrian motorbike manufacturer KTM-Sportmotorcycle is now going to use the country as the production hub for its dirtbike division Husqvarna Motorcycles’ new on-road motorcycles. Reports suggest that the parent brand is working on plans to develop such bikes for the global markets with partner Bajaj Auto at Chakan near Pune.

The initial roadmap would see engines and components being sourced from India and assembled in Austria, for sale in Europe and America from 2017. This could be followed by the introduction of these bikes in emerging markets like India while production could also commence in the sub-continent in the near future.

"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," KTM chief executive Stefan Pierer said in an interview, and added, "In model year 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, coming basically back to India."

The new Husqvarna motorcycles would be powered by 125cc and 390cc engines, similar to the ones KTM is currently using in the products it has jointly developed with Bajaj. "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. It is a step-by-step process," Pierer said.

India has emerged as a key base for exporting 125cc, 200cc and 390cc bikes for KTM because of the benefits of low-cost production accruing from its partnership with Bajaj. "In my opinion, Bajaj is the most efficient producer and it helps us price our KTM entrance products very competitively in emerging markets. Together we could achieve very good quality levels on the products we sell globally," added Pierer.

KTM's alliance with Bajaj gives them access to a low-cost production hub for motorcycles below 500cc, which is where the volumes are. Though, it is yet to be seen how well these new on-road offerings from the European manufacturer would fare in India.   

Source: Economic Times