Austrian motorbike maker KTM opens Philippine factory

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KTM bike factory in Mattighofen, Austria © Arno Maierbrugger

Iconic Austrian motorbike manufacturer KTM announced it opened a new production facility in the Philippines under KTM Asia Motorcycle Manufacturing Inc., a cooperation with Ayala Group.

The state-of-the-art plant is located in Laguna Technopark and, at the start, will employ about 40 workers and ten engineers and technicians who will produce an initial 6,000 bikes a year. Plans are to increase staff to 150 and annual output to 20,000 bikes over time for the wider East Asian market.

According to Hubert Trunkenpolz, KTM’s Chief Sales Officer, the facility will produce four of the brand’s street models – the 200 Duke, 390 Duke, RC 200 and RC 390.

The manufacturing expansion to the Philippines is understood to be a part of KTM’s global expansion strategy, which includes the Association of Southeast Asian Nations (ASEAN) as one of the key two-wheeler markets. According to the company, its ASEAN expansion strategy entails widening the dealer network up to 30 dealerships in the region including sales and after sales support in 2017.

In April last year, KTM reached an agreement with Bajaj Auto, which has a 48-per cent stake in the Austrian bike maker, to foray into the Indonesian market through setting up a distribution channel to be managed by the Indian partner. KTM has also flagship stores in all other ASEAN countries except Laos and Brunei.

The bike maker is also eyeing to expand with its performance bikes in China, the world’s largest two-wheeler market.

KTM at SM Makati, Manila © Imran Saddique

The Mattighofen, Austria-based company was launched in 1951 with just 20 employees and today is the largest motorcycle manufacturer in Europe. It also owns the Husqvarna motorcycle brand which it acquired in 2013, and is in a production partnership with ATV maker Polaris Industries. Globally, KTM is mainly known for its iconic orange-coloured off-road motorcycles which won many races and championships.

In 2016, KTM sold more than 203.000 motor vehicles worldwide, generated a turnover of over €1.14 billion and employed more than 2,700 people. Apart from Austria, the company’s operates another production line in India at a Bajaj factory in Chakan, Pune district. KTM also has a large sales organisation in the US.

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Reading Time: 2 minutes

KTM bike factory in Mattighofen, Austria © Arno Maierbrugger

Iconic Austrian motorbike manufacturer KTM announced it opened a new production facility in the Philippines under KTM Asia Motorcycle Manufacturing Inc., a cooperation with Ayala Group.

Reading Time: 2 minutes

KTM bike factory in Mattighofen, Austria © Arno Maierbrugger

Iconic Austrian motorbike manufacturer KTM announced it opened a new production facility in the Philippines under KTM Asia Motorcycle Manufacturing Inc., a cooperation with Ayala Group.

The state-of-the-art plant is located in Laguna Technopark and, at the start, will employ about 40 workers and ten engineers and technicians who will produce an initial 6,000 bikes a year. Plans are to increase staff to 150 and annual output to 20,000 bikes over time for the wider East Asian market.

According to Hubert Trunkenpolz, KTM’s Chief Sales Officer, the facility will produce four of the brand’s street models – the 200 Duke, 390 Duke, RC 200 and RC 390.

The manufacturing expansion to the Philippines is understood to be a part of KTM’s global expansion strategy, which includes the Association of Southeast Asian Nations (ASEAN) as one of the key two-wheeler markets. According to the company, its ASEAN expansion strategy entails widening the dealer network up to 30 dealerships in the region including sales and after sales support in 2017.

In April last year, KTM reached an agreement with Bajaj Auto, which has a 48-per cent stake in the Austrian bike maker, to foray into the Indonesian market through setting up a distribution channel to be managed by the Indian partner. KTM has also flagship stores in all other ASEAN countries except Laos and Brunei.

The bike maker is also eyeing to expand with its performance bikes in China, the world’s largest two-wheeler market.

KTM at SM Makati, Manila © Imran Saddique

The Mattighofen, Austria-based company was launched in 1951 with just 20 employees and today is the largest motorcycle manufacturer in Europe. It also owns the Husqvarna motorcycle brand which it acquired in 2013, and is in a production partnership with ATV maker Polaris Industries. Globally, KTM is mainly known for its iconic orange-coloured off-road motorcycles which won many races and championships.

In 2016, KTM sold more than 203.000 motor vehicles worldwide, generated a turnover of over €1.14 billion and employed more than 2,700 people. Apart from Austria, the company’s operates another production line in India at a Bajaj factory in Chakan, Pune district. KTM also has a large sales organisation in the US.

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