Bajaj increases stake in KTM to 25.86 percent

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KTM_Comet_chopper.jpgBajaj Auto has increased its stake in KTM to 25.86 percent. This completes plans announced by the company in January to do exactly that. Rumors are now rife that Bajaj could seek a majority stake in the Austrian motorcycle manufacturer, a move that Baja has stated it would consider.
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Rather than being seen as a negative turn of events, Bajaj’s investment
means several positive thinks for KTM. First and foremost is that KTM’s
ability to weather Great Depression 2.0 has now been significantly
increased. Not only does the Bajaj investment bring money, but it opens
up new markets for KTM products in Southeast Asia. The two companies
are said to be developing a range of 125cc and 250cc motorcycles, some
of which could be sold in the West as KTMs. Bajaj is also a key partner
in the development of the KTM SUV and city cars, products that will
further diversify KTM’s offerings.

via Bikes in the Fast Lane

  • Mike

    I’d totally take one of those choppers with a 690 thumper in it!

  • http://setthemfree.tumblr.com Sasha Pave

    I’m not entirely confident in KTM’s M&A strategy, first with Polaris and now Bajaj? I had always though BMW would be a natural suitor, although I guess they bit off a smaller pice with Husky.

  • http://cohobot.blogspot.com/ coho

    Neat bike. It’s nice to see a well-sorted machine that looks good, too.

    @ Sasha: A KTM/BMW venture is about as likely as a 2010 Chevro-Ford.

    Not gonna happen.

  • Giton

    Shades of MZ. If KTM can’t weather this emerging depression, and is taken over by an outfit without the passion for motorcycles, it’s a goner

  • David

    It takes cash to have passion.

  • http://sidewaysnortheast.blogspot.com/ Frank

    Considering KTM had the sixth highest sales volume in the US, beating ALL the other Euro manufacturers, I wouldn’t worry about their viability.
    That mutt pictured hurts my eyes.

  • http://twitter.com/skadamo skadamo

    @giton, Bajaj has a passion for motorcycles. They even spend money on creative commercials. I’m kind of excited about this whole thing…

    http://www.youtube.com/watch?v=wBqpQySKwcI

  • http://twitter.com/skadamo skadamo

    Found another one with Jackie Chan :D

    http://www.youtube.com/watch?v=KxLkjpr8vU0

    How cool would this commercial be with Jackie getting crazy on a 990 Super Enduro? OK, not a whole lot.

  • giton

    @skadamo, have you yet to learn there is no, nada, zip, zero, connection between the product and the advertising? I can see that mutt(as Frank says) now with the once proud KTM label on its flanks.
    Glad I bought my Duke 690 before the worst happens.

  • adolph h

    giton –

    i am pretty certain that the Duke 690 IS the worst that could happen to ktm.

  • http://twitter.com/skadamo skadamo

    “have you yet to learn there is no, nada, zip, zero, connection between the product and the advertising?”

    Depends on how you look at it. I’m in it more for entertainment. I think advertising improves sales which can be reinvested in products.

    Regardless, I don’t think Bajaj commercials do a lot for the brand image here in the US. I just like powersports commercials and most of the few shown in the US are yawners. The links above are cheezy but creative. I like them for the same reason I like Korean, Chinese, and Indian bikes coming to the US. Shake it up! Variety. :D Knock the big 4 out of their rut and make them innovate and serve the neglected niches here in the US. (going off topic here) 4 more HP on the GSXR is cool but boring at the same time. I’m kinda sick of “choose your favorite color” shoot outs of liter bikes, MX, Supersport, etc.

    I have a hunch the only reason we saw a new Ninja 250 is Hyosung and other underdogs gaining marketshare in the 250 segment. My hope is that maybe Honda will redesign the Rebel before my 2 year old can ride. :O End off topic rant. :D

    KTM does exactly what I want to see in the industry. I do hope Bajaj does not screw a good thing.

  • giton

    Depends on how you look at it. I’m in it more for entertainment. I think advertising improves sales which can be reinvested in products.”

    That ducks the question. Whatever advertising of this sorts can do for sales, one should be wary of the hype.

    “KTM does exactly what I want to see in the industry. I do hope Bajaj does not screw a good thing.”

    I assume you mean they are providing an interesting alternative to the Japanese formula bike. Couldn’t agree more as, like you, the handsprings the moto press does over the latest sportbike is uberboring. That’s why I bought a Duke 690. But it’s never a good sign when a small company takes on a partner like Bajaj. It always leads to badge engineering and eventual demise.

  • mark

    That KTM chopper is something KTM made in the 60′s or early 70′s!