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Bajaj-KTM to enter Indonesian market soon

Snapshot: The decision to emphasise our sales activities in the South-East Asian distribution network is the logical next step in our long-term oriented strategy - Hubert Trunkenpolz, CSO, KTM

The Indo-Austrian partnership is looking forward to extend their business to the Indonesian market. Bajaj Auto will be responsible for the establishing the dealership network across Indonesia and will deal in motorcycles below 400cc range from KTM. The joint venture of Bajaj and KTM has helped both the brands to climb up the ladder and extend their business on a rapid rate. KTM launched their product line-up in India on a very aggressive price thanks to the low-cost manufacturing capacities of Bajaj.

Being the biggest South Asian two-wheeler market, Indonesia is always on the priority for all the two-wheeler manufacturers. The company has targeted to touch 2.5 lakh unit sales by 2020 and the entry into the Indonesian market will surely help achieving the same.

While a majority of KTM models are manufactured in the company’s main factory in Mattighofen, Austria, the small capacity Duke and the RC models are produced at Bajaj’s factory in Chakan, Pune. These two models are targeted at emerging markets and are the biggest contributors in terms of volume. Sales of bigger KTM motorcycles in Indonesia will continue to be managed by the current official importer of KTM bikes - PT Jaya Selaras Sejahtera. 

Speaking about their decision, Hubert Trunkenpolz, CSO, KTM AG said in a company release: “The decision to emphasise our sales activities in the South-East Asian distribution network is the logical next step in our long-term oriented strategy. It supports our presence in the price-sensitive Indonesian market by using synergies from our strong alliance with Bajaj.”

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