KTM recently started selling its smaller displacement motorcycles in Indonesia via the CBU route. Now, with the positive reception shown towards these models, Bajaj Auto has expressed a desire to set up a plant in the country and begin production using CKD kits.
Bajaj itself had entered the Indonesian market way back in 2005 with its Pulsar under the venture PT. Bajaj Auto Indonesia, but was greeted with a lukewarm reception and was unable to convert it into a profitable venture. Bajaj attributed this to the domination of Japanese brands in the Indonesian market and it was therefore pleasantly surprised by the interest shown in the KTM models recently launched there.
Bajaj has been so impressed by the sales figures that, in its recent annual report, it stated it is moving towards setting up a plant in the country. It went on to say that the necessary licenses are being renewed, and clearances are awaiting approval.
"The plan for PT. Bajaj Auto Indonesia is to spearhead the development of KTM and Bajaj partnership and bring the jointly developed products into Indonesia. To take this further, all the required manufacturing, import, and business licenses have been renewed. Further, studies on the product acceptability have been conducted, which look favourable," Bajaj Auto stated in its 2017-18 annual report.
"CKD configurations have been created and the process of seeking clearances for these configurations has started. The company plans to kick off the business operations for PT. Bajaj Auto Indonesia in the current year with the CKD production in Indonesia,” added the report.
KTM currently sells the 200, 250 and 390 Duke and RC models in Indonesia as CBU units, and these are the models expected to be manufactured from CKD units once the plant is up and running. As Bajaj has mentioned, this should occur within this financial year.
Azaman Chothia
Vishal Venugopal
