Source :
https://www.motorcycle.com/features/...er-part-1.html
Stefan Pierer, CEO of PIERER Mobility AG, the parent company of KTM Group, Austria, was interviewed by Alan Cathcart. The below is extracted from Part 1. Part 2 is yet to be published.
Relevant excerpt for India reproduced below. Emphasis added by me :
Interview With KTM’s Stefan Pierer – Part 1
The Roll Call of Success
Interview with KTM’s Stefan Pierer
Alan Cathcart March 15, 2023
Alan C: Will all future middleweight KTM, Husqvarna, and GASGAS twin-cylinder models be made in China?
Stefan P: That’s the plan – they’ll be made in China, and the premium bikes here in Austria. I distinguish between premium and entry-level middle-class models. The more price competitive models are coming from China, and the premium bikes are coming from here.
But I was in India in January, and it seems now even the twin-cylinder bikes can also be made there, which is very helpful.
AC: I thought your future strategy had been for CFMOTO to concentrate on producing twin-cylinder middleweight models, and Bajaj in India the single-cylinder models?
SP: Yes, that was our strategy for a while.
But for sure in the next two years, the twins will also be made in India, too. AC: Will this be the RC490 500cc parallel-twin that you’ve been working on for some years?
SP: No, it’ll be the 790 – why should I reinvent everything from scratch?! Maybe they’ll name it the 690 or whatever like BMW, but that’s not an issue.
Chinese products don’t have any chance in India, where they have to have an Indian provenance. If you show up with a Chinese-made model, forget it. The 500 class, for me, is not an interesting category anymore, so we stopped the RC490 because we are bringing the 790 down a little bit. We’re talking about the 690 or 650 – and that’s better for marketing, because more is always better than less! Also, its pricing is always an issue. It’s easier to make a satisfactory price tag with a 650 model compared to a 500. A 500 is an entry-level bike.
AC: So, you’re saying the 790 parallel-twin KTM will be made in India within the next two years? SP: For sure – we are already starting the discussion on how to achieve this, and with which kind of component supply solution, but it’s coming. We will have the 790 built there for sure, and the Naked bike will be the first one, as usual.
AC: Will these be only for India, or will they be sold in Western markets, too?
SP: The idea is that India takes care of India, Nepal, Sri Lanka, Indonesia – it’s dependent on price sensitivity, as well as geographic proximity.
AC: But for Australia, which is close to both India and China geographically, would such models come from India?
SP: India, yes, for sure India. However, for Asian markets China is ahead because the Chinese guys are so fast – I’m seriously impressed. They are the world champions in copying, but to a high level. Within less than two years we have transferred our entire 790 platform to them with a 100% supply chain in China, and it’s working very well – the quality is excellent. So, we are starting this year to handle CFMOTO’s distribution for the whole of Europe, which is the first step we agreed based on the intellectual transfer of the platform. We are taking care of importation to Europe of all CFMOTO products based on a KTM engine platform.
AC: Is it true that a number of KTM models manufactured in India has now passed one million?
SP: Yes, that was the reason that I visited there in January, it was the one million production milestone.
AC: Congratulations – but is your relationship with Bajaj still as strong now as it used to be in light of your growing alliance with CFMOTO?
SP: Between Rajiv Bajaj and me, it’s turned out to be a real friendship. It’s a win-win situation for us both, and if we are both doing good, he’s benefitting and vice versa. Without Bajaj we never would have leveraged overall production to the level that we are at now.
AC: Will Bajaj only make KTM branded bikes for you besides his own products?
SP: No, Rajiv is now also doing Husqvarna for us, and then for many years he’s been trying to do something with Triumph, which, hopefully, will finally come to market later this year, or next year. They’ve been talking to each other since 2016, and were supposed to be launching their first joint venture model round about now, but it seems, the earliest it will now come is in Autumn this year, because they made some more research and changed the styling, or something.
AC: Is the close relationship between Triumph and Bajaj a problem for you?
SP: No, I like competition, it keeps you alive, keeps you fresh!
AC: It’s competition within an established partnership, though.
SP: Look, I’m doing the same thing with CFMOTO, so it all balances out.
AC: So if Mr. Bajaj ends up taking over control of Triumph, which seems possible, it would be no problem for you?
SP: No, I’ve known for a while that’s his long-term strategy – we’ve discussed it. I’ve been doing so many acquisitions myself lately, but now Rajiv – it’s your turn! You’re the expert on how to manage things with your former ruling nation, not this guy from Austria! So, good luck with that.