Bajaj Auto said it agreed with its Austrian associate KTM to expand the brand sales and shift some of the production of Husqvarna motorcycles to Bajaj’s factory in Chakan, Maharashtra.
The brand Husqvarna, founded in 1903 in Italy, used to be owned by BMW at one time. It was bought by KTM in 2013. BMW sold the brand after failing to revive sales in the aftermath of the global financial crisis of 2008.
Last year, it sold around 30,000 units.
Bajaj Auto and KTM have now decided to expand the brand, said the Indian company.
“The first models, Vitpilen 401, Svartpilen 401 and Vitpilen 701 will be produced in Mattighofen, Austria, and launched in early 2018. Later in 2018, the Vitpilen 401 and Svartpilen 401 production for the global markets will be transferred to Bajaj’s Chakan factory.”
The companies claim that Husqvarna is the world’s second oldest motorcycle brand.
Bajaj Auto had ‘saved’ KTM from bankruptcy with a timely investment in the company ten years ago.
At present, two of KTM’s models, DUKE 125 – 390 and RC 125 – 390 — are produced in Bajaj´s production facility in Chakan and distributed by the two partners globally.
A total of 100,000 KTM motorcycles are expected to be produced in India in 2017, and with the addition of the new brand, the total units produced in Chakan will rise to over 200,000 in coming years, it said.
BAJAJ aims to sell Husqvarna motorcycles at a similar level as KTM products in India and Indonesia.
In 2016, KTM sold 203,423 motorcycles, including KTM DUKE 200, DUKE 390, RC 200 and RC 390, sold in India through Bajaj.
Bajaj is the world’s third largest motorcycle manufacturer and its largest three wheeler & quadricycle manufacturer.