Bajaj Auto may move KTM production from Austria to India
What's the story
Bajaj Auto is considering moving the production of KTM bikes from Austria to India. The move comes as part of a three-pronged turnaround plan for the struggling European bike manufacturer. The company plans to invest €800 million (approximately ₹8,200 crore) into this revival effort. Rakesh Sharma, Executive Director at Bajaj Auto, said they will explore all cost-cutting options without compromising quality in the turnaround process.
Takeover progress
Bajaj has applied for majority control over KTM
Bajaj Auto has applied for majority control over KTM AG in recent weeks. The process requires nine approvals from different European commissions, out of which eight have already been secured. Sharma said they expect to get the final approval by mid-November, after which they can actively lead and direct the turnaround process for KTM.
Production strategy
Shifting production to India is on the table
When asked if the turnaround plan involves shifting production to India, Sharma said it is definitely on the table. He added that while Bajaj has been manufacturing mid-capacity bikes at its Chakan plant, they won't be making large bikes here as these require equal support from their auto parts vendors. Apart from India, KTM also has a manufacturing base in China.
Plan details
Revival plan includes financial infusion and fresh manpower
The revival plan for KTM also includes a financial infusion and the introduction of fresh manpower at senior levels. Sharma said they need to work with the company to establish a proper people structure as many old management members have either left or are in the process of leaving. He added that cost reduction is another key aspect of this plan, which includes both overheads and direct manufacturing costs such as components.