Kinetic to build Cagiva motorcycles in India

Italian motorcycle major Cagiva has reached an agreement with Kinetic Engineering of Pune, where the latter is likely to start manufacturing single-cylinder Cagiva models developed in Italy.

Cagiva President Claudio Castiglioni is planning to restructure his company, which includes three brands "" Cagiva, Husqvarna and MV Agusta "" and in comments made to mediapersons recently, he indicated that India is likely to be a major role-player in that streamlining operation.

The brand Cagiva will feature a series of Indian-made models. The deal, aimed at cost-effective quality at competitive prices, includes two-stroke 125cc Mito and a four-stroke version of the same motorcycle. Cagiva has also shown a prototype model called the Mito 500, which may be fitted with a 650cc engine. This model may also go into production here.

Cagiva also indicated that high-technology components would still be manufactured in Italy, but would be shipped for assembly to India.

The move will allow Cagiva to become an entry-level brand that will stand beside premium brand MV Agusta and complete the offering range.

India as a manufacturing base will allow them to lower manufacturing costs, while keeping quality constant. The first of the Indian-made Cagivas are likely to debut at the Milan Motorcycle Show in November 2007.

Sulajja Firodia-Motwani, director, Kinetic Engineering confirmed part of the development saying that the company had signed a supply agreement with MV Agusta for supply of various components of motorcycles. She declined to divulge any further details on the nature of the agreement.