Bajaj has increased its stake in KTM from 25.86 to 31.72 percent. The Indian motorcycle manufacturer has previously indicated its intent to acquire a majority stake in KTM. The two companies are working together to develop a new range of small capacity motorcycles, some of which could be sold in the West under the KTM brand. Bajaj is also rumored to be a key partner in the development of the KTM SUV and city cars.
The KTM/Bajaj partnership actually makes a lot of sense. KTM has a lot
of engineering know-how, but not a huge amount of cash or manufacturing
capacity. Bajaj, the second largest motorcycle maker in India, sells
huge numbers of small capacity machines, the largest being the 220cc
Pulsar. KTM would like to expand into new markets, both regionally with
sales in Southeast Asia and in smaller capacity segments of its current
markets. Bajaj would like to sell motorcycles in Europe and develop a
range of larger capacity bikes. The two are said to be developing a new family of 125, 250 and 500cc engines to use in road, enduro and
supermoto applications. The 500cc engine is rumored to be a v-twin.
KTM has stated that its long-term goal is to become the largest
motorcycle manufacturer in Europe, producing 200,000 bikes a year by