Bajaj-partner KTM acquires Husqvarna brand from BMW

Friday 01 February 2013, 11:48 AM by

KTM, the Europe's largest two wheeler maker in terms of volumes, has purchased the dirt bike specialist Husqvarna brand from its German competitor, BMW Motorrad. Interestingly, Bajaj Auto owns a massive 47 per cent stake in the Austrian bike maker, KTM. However, the consideration involved in the deal has not been revealed yet.

On the deal, an official statement from BMW reported, “The BMW Group is realigning its BMW Motorrad business. By restructuring the segment, it will concentrate on expanding and utilising the resources of the BMW Motorrad brand. Therefore, the BMW Group signed a purchase agreement with Pierer Industrie AG (Austria) for the acquisition of Husqvarna Motorcycles.”

It further added, “In the context of changing motorcycle markets, demographic trends and increasing environmental demands, BMW Motorrad will expand its product offering to exploit future growth potential. The focus of the realignment will be on urban mobility and e-mobility.”

Reportedly, Husqvarna brand has been into two wheeler operations since 1903 and specialises in street and off-road bikes, which exactly matches with the KTM’s line-up. Industry experts are anticipating that the parent company will soon introduce the brand in the Indian auto market by initiating its production at Bajaj’s Pune manufacturing plant.

KTM has been banking on the massive success of its Duke model in the Indian market, which is made at the Bajaj Auto’s Chakan plant. Reportedly, both KTM and Bajaj Auto have planned to introduce a number of models from the portfolio of Austrian auto maker, which will be locally made in the country. It must be noted that Bajaj Auto shares the designing platform and engines with KTM, which are co-developed by both the two wheeler makers.

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