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Just few months after German bike giant BMW Motorrad held talks with Venu Srinivasan-led TVS Motors for an India entry rival KTM bought a synchronous brand Husqvarna and announced its India launch plans.
Austria-based KTM, which overtook BMW to become the largest bike maker in Europe last year, is planning to roll out Husqvarna motorcycles from the Chakan, Pune-based plant of partner Bajaj Auto.
For BMW, India is the key for the future as matured bike markets, which are also its traditional markets including Europe, USA and Canada are grappling with weakening demand.
Emerging markets such as India, South East Asia and Latin America will power growth for even niche brands such as BMW, say automotive market experts as demand smaller performance superbikes is expected to hit new highs
Both Chennai-based TVS Motors and BMW Motorrad will cooperate in a new series of motorcycles having engine capacity below 500cc. The partnership will benefit BMW in pulling down their entry price level, which is too high at the moment.
BMW has been selling premium bikes in India since early 2011, however, they are fully imported directly from Germany with most being imported only as per order and are priced upwards of Rs 1,800,000.
KTM, along with Rajiv Bajaj-led Bajaj Auto, is planning to roll out Husqvarna motorcycles in 2015. The bikes will be designed and developed by Bajaj and will be made locally to achieve pricing advantage.
Like KTM Husqvarna, which is headquartered in Sweden, too is primarily into off-road motorcycles. The Austrian company, in which Bajaj Auto holds nearly 48 % stake, bought controlling stake in Husqvarna from BMW in February this year.
KTM aims to position Husqvarna bikes above the Pulsar brand of Bajaj but on par with its own range which presently includes the Duke 200, priced at around Rs 120,000. One of the models planned for the Swedish brand for India includes a touring bike powered by the same engine used by the Duke 200 and the Pulsar 200NS.
In an exclusive interview to Business Standard earlier, Stefan Pierer, chief executive, KTM, said, “For the small displacements it could be that Huskys be made at Chakan. We are also thinking and analyzing which displacement makes sense, a 200cc and a touring version for something like the emerging markets; so in the mid-term for sure Huskys can come from the Chakan plant.”
KTM and Bajaj have moved beyond the Duke 200 and will shortly roll out the Duke 390 followed by a watered down version of the RC8 superbike. Moving forward the two companies will share engines, platforms and components for all the brands made in India.
“It will take two years time for the roll out of Huskys from here although the engine in ready, to develop a bike which is a part of other activities, it will take two years. Huskys will be made by Bajaj Auto just like other small displacement KTMs. It could be that the Pulsar, Duke and a Husqvarna be using the same platform”, added Pierer.
However BMW, KTM and Husqvarna are not alone. At least three more premium international bike brands are aggressively targeting the Indian buyers.
UK’s century old iconic bike brand Triumph is building a new assembly factory in Karnataka, its only third global plant after the UK and Thailand. A new 250cc model is also being reportedly developed for the emerging markets.
South Korean racing specialist Hyosung is keen to expand its product portfolio in India. Partner DSK Motowheels is investing Rs 300-400 crore into a new plant in Maharashtra which will produce 250cc and above motorcycles.
US-based cruiser brand Victory Motorcycles will also launch its bike range in India by the end of this year. The company’s high engine capacity products are built for leisure riding activities.
