Is KTM Expanding Asian Production? Bajaj’s Strategy Uncovered

The global motorcycle industry is witnessing a significant transformation, and at the centre of it stands KTM, Austria’s performance-focused motorcycle manufacturer, and its strategic partner—and now majority owner—Bajaj Auto of India. Over the past two decades, KTM has become synonymous with innovation, adventure, and high-performance biking. Yet, behind the orange branding lies a shifting production strategy: more of KTM’s motorcycles are now being manufactured in Asia, particularly in India.

The pressing question among enthusiasts and analysts is: Is KTM moving more production to Asia under Bajaj’s ownership? To answer this, we must examine the company’s history, Bajaj’s growing role, economic motivations, and what it all means for riders worldwide.

Table of Contents

KTM’s Evolution and Global Footprint

KTM, founded in 1953 in Mattighofen, Austria, started as a small manufacturer of bicycles and mopeds. Over the decades, it grew into one of the most respected motorcycle companies in Europe, excelling in motocross, enduro, and later, street motorcycles.

By the late 1990s and early 2000s, KTM faced challenges competing globally with giants like Honda, Yamaha, and Suzuki. The company needed a partner to help scale its operations and reach cost-sensitive markets. Enter Bajaj Auto, one of India’s largest two-wheeler manufacturers.

In 2007, Bajaj Auto purchased a stake in KTM, which gradually increased over time. Today, Bajaj controls more than 48% ownership, making it the single largest shareholder in KTM. With this backing, KTM’s production strategy has shifted dramatically—leaning heavily on Bajaj’s cost-effective, high-volume manufacturing plants in India.

Bajaj’s Role in KTM’s Global Growth

Bajaj Auto is not just a financial investor in KTM; it is the operational backbone of many KTM motorcycles sold worldwide.

Pune and Chakan Plants: Bajaj’s factories in Chakan, near Pune, manufacture KTM’s entry- and mid-level models such as the Duke 125, Duke 200, Duke 250, Duke 390, RC 125, RC 200, and RC 390. These motorcycles are then exported to over 70 countries.
Economies of Scale: Bajaj’s ability to mass-produce at a lower cost has allowed KTM to price its motorcycles competitively in both developed and emerging markets.
Innovation Partnership: Beyond manufacturing, Bajaj has played a role in developing new models tailored for Asian markets, blending KTM’s engineering with Bajaj’s cost-efficient design.

In short, without Bajaj, KTM might have struggled to expand into the booming Asian market.

Why Shift Production to Asia?

The move to increase KTM production in Asia is not arbitrary. It is driven by several compelling factors:

1. Cost Efficiency

Europe has higher labour costs, stricter environmental regulations, and higher production overheads. Manufacturing in India allows KTM to significantly cut production expenses while maintaining global quality standards.

2. Proximity to Growing Markets

Asia is the fastest-growing market for motorcycles. Countries like India, Indonesia, Vietnam, and Thailand collectively account for millions of annual motorcycle sales. By producing motorcycles in Asia, KTM reduces logistics costs and gains faster access to these markets.

3. Global Export Hub

Bajaj’s plants are not just serving local demand—they export KTM bikes to Europe, North America, and Latin America. This positions India as a global hub for KTM’s lightweight and mid-segment motorcycles.

4. Product Segmentation

KTM’s strategy is to keep high-end models (790, 890, 1290 series) manufactured in Austria while moving smaller-displacement motorcycles (125cc to 500cc) to Asia. This allows KTM to balance its European heritage with cost-effective Asian production.

KTM Under Bajaj: What’s Changing?

With Bajaj’s controlling interest, KTM’s production and strategic direction are changing in noticeable ways:

Expansion of Production Capacity in India: Bajaj has hinted at increasing its Chakan plant’s capacity to handle not only KTM but also Husqvarna models, another brand under the KTM umbrella.
Focus on Sub-500cc Motorcycles: Bajaj is spearheading the development and production of motorcycles in the 125cc–500cc range, which are critical for Asian and Latin American markets.
Joint Development of New Platforms: Bajaj and KTM are working together on electric motorcycles and smaller adventure models, aiming at eco-conscious urban riders in Asia.

This shift suggests that KTM’s Asia-centric production is not temporary—it is a long-term strategy.

Concerns from Enthusiasts

Not all KTM fans are thrilled by this shift. Some concerns include:

Loss of “Made in Austria” Heritage: Purists argue that KTM risks diluting its brand identity by producing more motorcycles outside Europe.
Quality Perceptions: While Bajaj-made KTMs maintain global standards, some riders still perceive European-made bikes as superior.
Market Segmentation: European and North American riders may fear fewer high-displacement models reaching their markets as KTM focuses on Asia.

Despite these concerns, sales figures show that Bajaj-produced KTMs are well-received globally, with reliability and performance largely uncompromised.

The Bigger Picture: Global Motorcycle Industry Trends

KTM’s production shift mirrors a larger trend in the motorcycle industry.

Honda and Yamaha: These Japanese giants have long had manufacturing plants in India, Indonesia, and Thailand.
BMW Motorrad: BMW partners with TVS Motor Company in India to produce its entry-level G 310 series.
Harley-Davidson: Harley has also moved some production to Asia for cost and market-access reasons.

Thus, KTM’s strategy is not unique—it reflects the industry’s globalisation and search for efficiency.

Future Outlook: Will More KTM Bikes Be Made in Asia?

Given Bajaj’s growing influence, it is almost certain that KTM will continue to expand production in Asia. Possible future moves include:

Electric KTM Bikes from India: With Bajaj actively developing electric two-wheelers, KTM may use Bajaj’s facilities to roll out its first fully electric motorcycles.
Husqvarna Expansion: Husqvarna, KTM’s sister brand, is already being produced in India. Expect more models to be developed and manufactured for Asian and global markets.
500cc+ Bikes in India?: There is speculation that KTM could move some of its 500cc–790cc segment production to India or other Asian countries to lower costs.

While Austria will likely remain the home of KTM’s flagship and racing-oriented motorcycles, the bulk of future growth will come from Bajaj’s operations in India.

What It Means for Riders and Buyers

For motorcycle enthusiasts worldwide, KTM’s shift has mixed implications:

Affordable Prices: Riders can expect more competitively priced KTMs thanks to cost savings from India.
More Model Availability: Asian production ensures a steady global supply of small and mid-segment KTMs.
Growing Customisation: Asia-focused production may result in new models designed specifically for developing markets.
Premium Still in Austria: Those seeking premium high-displacement KTMs will still find them proudly “Made in Austria.”

Conclusion

So, is KTM moving more production to Asia? The answer is a clear yes, and Bajaj Auto is the driving force behind this shift. Under Bajaj’s ownership, KTM is not only increasing its reliance on India for small and mid-segment motorcycles but also reshaping its global strategy to remain competitive in a rapidly evolving industry.

For purists, the dilution of Austrian exclusivity may sting. But for the global motorcycle community, the outcome is positive: more riders can experience KTM’s performance DNA at affordable prices. As Bajaj continues to invest in production capacity and innovation, Asia will undoubtedly become the heart of KTM’s future growth story.

KTM is no longer just an Austrian company—it is a global brand with an Asian engine driving its success.

FAQs

1. Who owns KTM now?
Bajaj Auto of India is the largest shareholder in KTM, holding over 48% ownership, making it the de facto controller of the company’s production and strategy.

2. Which KTM models are made in India?
Models such as the KTM Duke 125, Duke 200, Duke 250, Duke 390, RC 125, RC 200, and RC 390 are produced in Bajaj’s Chakan plant in India.

3. Will KTM stop making bikes in Austria?
No, KTM will continue to produce its larger displacement motorcycles (790cc, 890cc, and 1290cc series) and racing bikes in Austria.

4. Are KTM bikes made in India lower quality?
No. Bajaj ensures global quality standards are met, and motorcycles made in India are exported worldwide.

5. What about Husqvarna motorcycles?
Husqvarna, a KTM-owned brand, is also manufactured in India by Bajaj and exported to several international markets.