KTM-acquired Husqvarna Coming to India by 2015

Austrian bike major KTM, which recently acquired rival brand Husqvarna from BMW Motorrad, is now planning to introduce the brand in India. Also, the acquisition helped KTM to become the undisputed leader in the niche off-road segment. The CEO of KTM Auto Stefan Pierer recently in an interview to Money Control talked about the thinking behind the acquisition and why it is a win-win situation for both KTM and Bajaj Auto.

SInce Bajaj holds 47% stacks in KTM and both are already in a manufacturing alliance, this acquisition will also be beneficiary for Bajaj-KTM alliance as they are going to launch the brand Husqvarna in India. KTM-Bajaj rolled out their first bike KTM Duke 200 last year in India, which received a good response, they have already sold 8500 bikes till date and soon to touch the 10,000 mark. Husqvarna is the cult bike brand, which is known for its off-roaders, and Duke 200 has proved that such bikes can be successful in India. Thus, KTM is hopeful that it can extend its current arrangement with Bajaj to include the Husqvarna and launch the first made-in-India Husky in two years from Pune.

Stefan Pierer, CEO, KTM Auto says, "First Husqvarna motorcycle will be launched in India in 2 years. Proposed Husky model for India to be made at Bajaj's Chakan plan will use joint engine platforms of Bajaj-KTM for Husky models. Joint-engine platform to be used for 125-200cc segment for Husqvarna." KTM is keen to model its strategy on the lines of auto giant Volkswagen. Pierer says just the way the German OEM has a common back end for a multitude of brands from Audi, Skoda and VW, KTM too will follow a similar approach. Stefan Pierer, CEO, KTM Auto adds, "If you look at Volkswagen group they have 9 or 10 different brands but inside they use same components, etc."

KTM reported its best ever annual sales at 107,000 units in 2012. With its latest acquisition, Husqvarna along with the other Swedish brand under its belt Husaberg KTM is aiming at over 120,000 units by the end of 2013. They are also expecting a good number from emerging markets like India, specially after the success of Duke 200, where KTM is speculated to launch Duke 390 soon, probably by June this year.