Bajaj Auto is planning to set up an assembly plant in Indonesia for KTM motorcycles, according to a report by Money Control. The decision comes after the company received a good demand for the Austrian bikes that are exported from India.
Bajaj Auto currently sells the Duke 200, 250 and the RC 200, 250 and the RC 390 in Indonesia under the KTM brand. These motorcycles are imported as CBU (completely built units) from India.
Local assembly of KTM bikes is planned to avail tax benefits and reduce the overall price of the bike. Bajaj Auto is currently awaiting clearances from the Indonesian government authorities to start CKD operations of its models. The company has already renewed the required 'manufacturing, import, and business licenses'. The CKD plant is likely to be operational before the end of this financial year.
Once the facility is in place, Bajaj Auto will manufacture KTM bikes in CKD kits at the Chakan plant in India and export them. The complete bikes will then be sold to the Indonesian distributors.
Also Read: 6 things we know about the KTM 390 Adventure for India
The KTM Duke/RC 200 is powered by a 199.5 cc, single-cylinder, liquid-cooled, fuel-injected motor that produces 24.6 bhp of power and 19.2 Nm of torque, mated to a 6-speed gearbox. On the other hand, the KTM Duke/RC 250 is powered by a 248.76 cc, single-cylinder, fuel-injected, liquid-cooled mill that delivers 29.6 bhp of maximum power and 24 Nm of peak torque, mated to a 6-speed gearbox with a slipper clutch. The KTM RC 390 sources power from a 373.2 cc engine that churns out 43.5 bhp and 36 Nm of torque. This engine is also mated to a 6-speed transmission and gets a standard slipper clutch.
[Source: Money Control]
