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Bajaj Auto partner KTM buys BMW's dirt bike brand

BS Reporter  |  Mumbai 

The chief executive of KTM, the Austrian motorcycle company, part-owned by Pune-based Bajaj Auto, has bought dirt bike specialist brand from Europe's largest bike company BMW.

Pierer Industrie AG, owned by Stefan Pierer, the CEO of AG, will buy the brand from BMW for an undisclosed sum. Rajiv Bajaj-led owns a little more than 47 per cent stake in

"The 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 signed a purchase agreement with (Austria) for the acquisition of Husqvarna Motorcycles," a statement from BMW said.

Husqvarna has been manufacturing motorcycles since 1903. It specialises in off-road and street bikes, matching the portfolio of AG. The KTM Duke 125 and 200 are made at the Pune plant of Bajaj Auto, India’s second-largest bike manufacturer.

Moving forward, Husqvarna bikes can also be made at the same Pune plant since there are several synergies within the class of bikes. The acquisition by KTM is considered significant as it is the first buyout after the Austrian company came out of losses.

KTM has been riding high on the success of the smaller Duke bikes made at the Chakan plant of Bajaj, which is the technologically most advanced plant among the four plants operated by the company. is also on the supervisory board of KTM.

"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", BMW stated.

Both KTM and Bajaj plan to launch several more products of the KTM range imported from Austria and made locally in India. Bajaj has been sharing engines and platforms with KTM which are jointly made by both.

TVS Motors, meanwhile, said the acquisition by KTM will not have any impact on its talks with BMW. The Chennai-based company has been in talks with the German giant for tie-up possibilities for motorcycles in India.

First Published: Fri, February 01 2013. 00:52 IST