Bajaj Auto and KTM AG extend partnership to embrace Indonesia

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Austrian company KTM AG and Pune-based Bajaj Auto have decided to extend their distribution network to Indonesia, the biggest motorcycle market in South East Asia.

The arrangement involves KTM branded Duke and RC motorcycles up to a displacement of 400 cc, which are developed and assembled by the joint venture. Bajaj Auto holds nearly half the equity stake in KTM, which specialises in off-road and street bikes.

The motorcycles will be distributed through a chain of KTM dealerships to be managed by Bajaj Auto, a statement by the Indian two and three wheeler manufacturer said.

Hubert Trunkenpolz, CSO, KTM AG, said: “The decision to emphasize our sales activities in the South East Asian distribution network is the logical next step in our long term oriented strategy. It support our presence in the price sensitive Indonesian market by using synergies from our string alliance with Bajaj”.  

Bajaj’s existing business partnership with the current importer in Indonesia P.T. Jaya Selaras Sejahtera will remain but will now fully focus on model range above 400 cc.

Rakesh Sharma, president (international business), Bajaj Auto said, “For Bajaj Auto this agreement to distribute sub-400cc KTM bikes in Indonesia is a major step forward.”