KTM might buy BMW’s Husqvarna off-road motorcycle division

Discussion in 'Indian Automotive Scene' started by Car Lover, Feb 1, 2013.

  1. Car Lover

    Car Lover New Member

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    This could turn out to be major good news for the Indian off-roading enthusiasts if the deal comes through. Austrian motorcycle company KTM, part-owned by Bajaj Auto, is reported to be in advanced negotiations with BMW for the sale of its group subsidiary Husqvarna.
    According to a report in The Economic Times, there has been major speculation over the possible acquisition of Husqvarna by KTM and what it would mean for its Indian part-owner Bajaj Auto. At present, there is no official confirmation but the reports say that the final announcement could come in the next one week or so. BMW bought Italian firm Husqvarna from MV Agusta in 2008.
    Will Bajaj Auto Benefit if the deal goes through?
    Yes. Bajaj, the Indian two wheeler giant has 47% share in KTM, short of having a controlling stake. It already owns sales rights for all KTM bikes in India and Asian region, where there is an interest for powerful off-road bikes. The customers for these bikes are aspirational and look at buying KTM bikes as part of their lifestyle and don't mind spending big bucks on them. Luxury bikes are a niche segment in India, dominated by commuter bikes. But the growth opportunity is huge similar to luxury cars.
    India's luxury auto market is just one per cent of the total automotive market. Husqvarna has a range of off-road, supermoto and street bikes.It includes the Nuda 900 and TR650 range of street bikes, SMR 630, 511, 125 and SMS 125 range of supermoto bikes, the TXC cross country range, the TE Enduro range as well as a mini cross range. Husqvarna bikes are very popular in the bike racing circuit.
     
  2. Car Lover

    Car Lover New Member

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