KATHMANDU: Bajaj Auto, the new majority owner of KTM, has hinted that the Austrian motorcycle brand could shift more production to Asia.
In an interview with CNBC-TV18, Bajaj Auto CEO Rajiv Bajaj shared his views on KTM’s future strategy. Bajaj said KTM needs to focus on two priorities: restoring its brand identity and reducing costs.
He noted that KTM’s product range has become too wide, making operations complex. “We have to bring the brand back to its core and simplify,” he said.
On costs, Bajaj was blunt. “European manufacturing is dead,” he said, pointing to Triumph’s decision to move most production to Thailand years ago. He suggested KTM could follow a similar path, taking advantage of India’s cost competitiveness and strong supplier base.
Bajaj also revealed that KTM motorcycles made in India earn over 30% in operating profit.
Bajaj Auto has invested nearly 1 billion USD in KTM, including a recent cash infusion to stabilize the company. Bajaj believes streamlining operations and shifting production could give KTM a stronger future.
He also spoke about KTM exports, saying they may hit a new high, depending on US tariffs. Bajaj mentioned a new twin-cylinder engine in development, likely to launch in about a year.
In other news, Bajaj confirmed a Triumph Tracker motorcycle is expected around October, expanding the 400cc lineup after the Thruxton 400.
