Bajaj and KTM will introduce Husqvarna e-scooter based on a jointly developed platform next year
Bajaj Auto and KTM AG have been having a fruitful partnership for the last 13 years. The Indian two- and three-wheeler giant currently holds 48% stake in the Austrian sportsbike manufacturer. The controlling stake of 51.7% in KTM is being held by Pierer Mobility AG which is in turn is parented by Pierer Industrie AG.
Bajaj and KTM have been involved in joint product development, manufacturing facility sharing, international distribution pact, and joint sales and marketing activities. Moving forward, the two brands are currently developing an electric two wheeler platform.
KTM-Husqvarna will use the Bajaj Chetak’s 4 kW electric platform for its upcoming Husqvarna scooter which will be made by Bajaj Auto in India. The duo are also working on a 4 kW/10 kW electric motorcycle platform which is likely to be marketed as Husqvarna E-Pilen.
Today it was announced that the first electric two wheeler from the brand will be launched in 2022. It is believed that the first product will be a scooter based on the Bajaj Chetak platform. Once launched, it will take on the likes of Ather 450X. More platforms and products are likely to be in the pipeline.
With Bajaj Auto’s help, KTM emerged as the largest premium motorcycle brand in the world by surpassing Harley Davidson in terms of volume in 2018 and 2019. 22% of the company’s H2 2020 sales is accounted for by products that were made by Bajaj in India and sold in domestic market as well as in Indonesia.
For Bajaj, KTM’s partnership gave access to technologies and the right to be the only manufacturer of KTM and Husqvarna bikes outside Europe. The export operations include important markets like US, Japan and South Asia.
Bajaj Auto to return its 48% stake?
According to a recent report by Moneycontrol, the Indian automaker’s European subsidiary Bajaj Auto International Holding BV is in talks with Pierer Industrie AG to transfer the 48% stake back to the Austrian parent company. It is likely Bajaj will in return get stake in Pierer Industrie AG. The finer details of the proposal and its consequences to the highly successful partnership is not known yet but we believe KTM and Bajaj will continue exploring synergies.
It is to be noted that the two entities had a similar discussions back in March 2019 with the stake transfer transaction scheduled to be completed in a matter of months. However, both parties withdrew the move for reasons not specified.
If the transfer is executed this time around, Pierer Group is expected to increase its stake in KTM AG from 51.7% to 99.7%. The brands KTM, Husqvarna and GasGas are under KTM AG’s umbrella. More details are expected to be released by the concerned parties in due course.