Today we attended the launch of KTM Duke 200 in India at New Delhi. We have covered all the details about the price, pictures, videos in a separate detailed article of KTM Duke launch in India here. At the launch, we had a long and insightful questions and answers session with Mr. Stefan Pierer, CEO of KTM-Sport motorcycles AG,and Mr. Rajiv Bajaj, MD Bajaj Auto, which gave us a deep insight into the KTM strategy and future roadmap in India. We have collated the below points from the official press conference and are exclusively bringing these details for our valuable readers.
image – Mr. Stefan Pierer, CEO of KTM-Sport motorcycles AG,and Mr. Rajiv Bajaj, MD Bajaj Auto
Following are the details revealed officially by Mr. Pierer, CEO of KTM and Mr. Bajaj MD Bajaj Auto at the press conference in New Delhi on 24 January 2012:
- Production of KTM Duke 200 has already started and the first batch of the bikes has already been dispatched for display at the KTM outlets and should reach there by end of this week.
- In a span of coming 3 to 4 months (by May 2012), Bajaj will exit its products from Probiking showroom completely.
- The production will start in full swing in Feb 2012 and the deliveries should start by the middle of February 2012.
- Official bookings will start from 1 Feb 2012 and there may be a 2 to 3 months waiting period initially.
- PowerWear and PowerParts (apparel and accessories) of KTM launched along with the Duke are also important for KTM business model. From US and Europe, these contribute to 20% of total revenues.
- KTM will introduce 7 New models in India in coming 2 years time span. This will include larger capacity 990 Super Duke.
- KTM Duke 200 has over 95% of Localization which means that it sources more than 95% of its components from India which is why KTM has been able to price it so aggressively. Also, since its an introductory price, the prices maybe revised in near future depending on costs and demand.
- Bajaj and KTM have been able to maintain high operating margins because Bajaj focuses on lesser number of products with more focus and discipline towards each project execution.
- Cost of quality components sourcing in India is one of the lowest in the world and this makes India a very favorable destination for KTM to manufacture its sports motorcycles in India.
- After KTM launch in collaboration with Bajaj, Bajaj will continue to sell Japanese Kawasaki Ninja bikes though its outlets and will not discontinue on them.
- At present, Bajaj owns 40% stake in KTM and it has raised this stake to 40% with intentions of investment only. Bajaj does not plan to buy majority stake in KTM as of now, so the ownership of KTM brand with not be with Bajaj, rather it’s a partnership on a product.
- As per Mr. Bajaj – Exclusive brands should remain exclusive, Bajaj has its own business model with high volumes and low pricing while KTM has opposite of it with Lower volumes and higher pricing with high quality products. The two do not have any conflict of interest. Bajaj is there to support KTM as a partner.
- All Probiking network of Bajaj will be converted KTM dealerships and this will provide for a deep penetration and reach to KTM in India. It has been made possible because the Probiking was set up in year 2003 and costs have increased a lot since then, so the advantage of having an existing set up is a huge cost advantage for both Bajaj and KTM.
- As per Mr. Bajaj, What Pulsar used to be in year 2001, when it was launches, so is the KTM today, a revolutionary product which has potential to take on the market share.
- KTM has plans to ramp up its manufacturing in India and double its exports in the year to come. Last year, KTM exported around 11,000 units from India which will be doubled in the year to come.
- Soon KTM will start exports from India to more Asian countries. KTM will also export its bikes to Brazil from India in future.
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