Bajaj Auto has bought 14.5% stake in European sports manufacturer KTM for rupees 300 crore ($76.3 million), reports CNBC-TV18.
Bajaj Auto and KTM will jointly produce 125 cc and 250 cc bikes. Bajaj says this equity investment will not impact its ongoing relationship with Kawasaki. This arrangement will see Bajaj auto and KTM working together to 3 -4 models in the 125-250 cc categories. 20,000 units of the bikes co-developed by Bajaj and KTM will initially be exported to Europe and will be rolled out in the H1 of 2010.
KTM stake was bought through Bajaj Auto’s Netherlands subsidiary. KTM is Power Sports leading manufacturer of power sports vehicles and has strong brand presence in Europe and United States. It offers more than 23 motorcycles, ranging in engine size from 50cc to 950 cc and is the largest non-Japanese off road motorcycle manufacturer in the world. (moneycontrol.com)