Bajaj Auto and Austrian bike maker KTM AG have inked an agreement that will see Bajaj Auto extend its distribution network to embrace Indonesia, the biggest motorcycle market in South East Asia.

In an announcement to the BSE, Bajaj Auto, which owns nearly 48 per cent stake in KTM and also assembles some of its models at Pune, said the arrangement involves KTM branded Duke and RC motorcycles up to a displacement of 400 cc, developed and assembled by the Austrian-Indian joint venture.

The existing business partnership with importer P T Jaya Selarus Sejahtera is to remain with a focus on the model range above 400 cc.

Under the new pact, motorcycles will be distributed through a chain of KTM dealerships to be managed by Bajaj. The aim is to expand the business in this relevant, growing and price sensitive market in the region, the statement said.

“The decision to emphasise our sales activities in the south-east Asian distribution network is the next logical step in our long-term oriented strategy. It supports our presence in the price sensitive Indonesian market by using synergies from our strong alliance with Bajaj,” Hubert Trunkenpolz, CSO, KTM, said.

Rakesh Sharma, President, Bajaj Auto international business, added, “Bajaj has established the KTM brand in India with an exclusive channel of 250 KTM stores. This is a major step forward.”

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