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Bajaj on EU dirt bike trail

autos Updated: Nov 05, 2007 22:43 IST
Suprotip Ghosh
Suprotip Ghosh
Hindustan Times
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Bajaj Auto is all set to ride into Europe. The company is a step away from selling its 125 cc bikes in the European Union (EU). India’s second largest motorcycle maker has picked up a 14.5 per cent stake in KTM Power Sports of Germany.

The Rs 300 crore deal makes Bajaj the second largest stakeholder in KTM Power Sports. KTM Power Sports owns KTM Sportmotorcycle, Europe’s second largest maker of sports and dirt bikes after BMW.

“This is Bajaj’s first step in its global ambitions,” Amit Nandi, GM marketing, Bajaj Auto told Hindustan Times. “The tie-up gives Bajaj access to 720 KTM dealerships in Europe, where we will retail our own products,” he added.

A tie-up between Bajaj and KTM will also offer an opportunity to co-develop a range of products for manufacture by Bajaj for both the KTM and Bajaj brands.

A technical collaboration, as part of the tie-up, will help the two companies develop and build 125 cc and 250 cc liquid-cooled four-stroke engines for KTM and Bajaj motorcycles in India and abroad. Under the agreement, future products for Bajaj and KTM will be manufactured in Bajaj’s existing plant at Chakan, near Pune.

KTM would get access to South East Asian markets, starting with India, Nandi said. It currently sells very limited number of models only in Japan.

Bajaj has recently launched its XCD 125 in India. The company’ sales have been sharply declining in the last year due to the stagnating 100 cc segment.