KTM targets 2.5 lakh bike sales in 2020 globally, one lakh to be Chakan-made

KTM Motorcycle has drawn its mid-term plan, which aims at annual sales of 2,50,000 motorcycles globally by 2020. Of that number, Bajaj Auto’s Chakan facility, where KTM bikes are currently manufactured will contribute 1,00,000 units for that year, or a significant 40 percent

On the sidelines of rolling out the KTM RC 200 and RC 390 bikes in Pune, Stefan Pierer, CEO, KTM Sportmotorcycle AG said “We aim to sell 1,40,000 bikes globally in 2014, against the total sales of 1,23,859 units last year (2013). Our EBIT margin stood at 7.7 percent last year and we expect that it will touch 9 percent this year.”

The KTM RC 390 and RC 200 will retail at for Rs 2,05,000 and Rs 1,60,000, respectively, ex-showroom Delhi. Known for its lightweight construction, the KTM RC 390 churns out 43.5PS of power (kerb weight: 166kg), while the smaller sibling has 25PS of power (kerb weight: 154kg). “These bikes are a benchmark for the Japanese,” said Pierer. “Bajaj has reached a remarkable level of quality in its production at Chakan and these two bikes are examples of that,” he added. Bookings for these KTM RC bikes begin on 10 September.

Both RC390 and RC200, says the company, have a localisation rate of 95-98 percent. While Bajaj will soon begin to export these KTM RC models to the US, KTM’s boss says, “We are studying the Brazil market as well and will soon chart its go-to-market approach.” In order to roll out 1,00,000 units KTM bikes, Rajiv Bajaj, MD, BAL, said, “No significant investment will  be required to boost the capacity.  We make enough Pulsar motorcycles every year to accommodate those numbers. The assembly lines for both brands are almost the same.”

Bajaj Auto sold 1,681 KTM motorcycles in Q2 of 2014-15 in comparison with 1,221 units in the year-earlier quarter. The company had 150 dealerships in place, as on September 2014.

Globally, KTM has nearly 2,000 dealers, 30 subsidiaries and 80 importers.