KTM AG, part of the Pierer Mobility Group and Italian sportbike manufacturer MV Agusta have inked a new strategic partnership. Under this agreement, KTM is set to acquire a 25.1 percent stake in MV Agusta this month by way of capital increase – the increase in value of an asset over time.
With this deal, KTM has announced that it will offer supply chain support to MV Agusta as well as take over purchasing for the Italian company. In effect, this should help MV Agusta optimise resources and costs as well as leverage KTM’s relatively larger scale of operations. In fact, in due course of time, MV Agusta will partly distribute its product range using Pierer Mobility’s worldwide distribution network.
Given that Bajaj Auto owns a 49.9 percent stake in PTW Holding AG, the parent company of Pierer Mobility, will MV Agusta make a comeback in the Indian two-wheeler market? It’s simply too early to say.
Would you like to see MV Agusta back in India? Let us know in the comments below.
Azaman Chothia
Vishal Venugopal
