Motorcycles are traditionally one of the most popular modes of transport in this country of some 260 million people.
An agreement has been reached between the two successful manufacturers that will see Bajaj extend its distribution network to embrace Indonesia. The arrangement involves KTM branded DUKE and RC motorcycles up to a displacement of 400 cc, which are developed and assembled by the successful Austrian-Indian joint venture. The motorcycles will be distributed through a chain of KTM Dealerships, to be managed by Bajaj, with the aim of expanding the business in this relevant, growing and price sensitive market in South East Asia.
“The decision to emphasize our sales activities in the South-East Asian distribution network is the logical next 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”, explains Hubert Trunkenpolz, CSO, KTM AG.
Rakesh Sharma, President International Business of Baja Auto, adds to the announcement: “Bajaj has successfully established the KTM brand in India with an exclusive channel of 250 KTM stores. For Bajaj Auto this agreement to distribute sub 400 cc KTM bikes in Indonesia is a major step forward. We will endeavor to strongly establish this Premium European Brand in Indonesia.”
The existing business partnership with the current importer P.T. Jaya Selaras Sejahtera will remain, but will now fully focus model range above 400cc.
KTM and Bajaj together represent driving forces in the development, production and distribution of sport motorcycles. Strategies for the successful partnership of these forward moving companies were established almost 10 years ago. The move elevated the KTM 125 DUKE into the position of first top selling product in 2011 in Europe and brought up a line-up of class leading eight Duke & RC models overall. Meanwhile, the co-working has resulted in the creation of more than 125,000 new customers for the globally expanding KTM GROUP.