KTM Power Sports, Austrian auto maker have shook hands where Bajaj increased its equity stakes in KTM to 20.89 percent. KTM is well known for its motorcycle expertise and has recently gained popularity for its street bikes as well. Bajaj plans to develop motorcycles for Indian and global market in collaboration with KTM. It shall also showcase KTMs range at its Pro bike showrooms.
The official press release from Bajaj states, " Bajaj Auto also announced the increase in its stake in “KTM Power Sports AG”, Europe’s second largest sport motorcycle manufacturer to 20.89%. Earlier Bajaj had taken a 14.5% stake in KTM through its 100% Netherlands subsidiary-Bajaj Auto International Holdings BV with Rajiv Bajaj, MD, Bajaj Auto Ltd. being inducted on the board of KTM. Bajaj has funded the current stake increase from its internal accruals. The co-operation agreement with KTM covers product development, technology, vendor sourcing and distribution."
KTM shall be introducing three intra-city transportation models along with Bajaj. Both the companies shall be jointly introducing a trike, scooter, and a budget scooter. They shall be available as petrol, diesel and electric variants and shall be marketed in developing countries.
