KTM’s joint venture with CFMoto is all set to enter the next level with the construction of an all-new manufacturing facility in Hangzhou, China, 200 km from the city of Shanghai. The new plant will have an annual production capacity of 50,000 units which can be further increased to 1 lakh units. CFMoto’s installed capacity in the plant right next to the upcoming facility has a capacity of 50,000 units.
Construction of the new plant began in March 2018 and will be completed by June 2020. However, series production of KTM motorcycles will begin only in September 2019. The joint venture, signed in October 2017, will see KTM shifting its manufacturing of middleweight portfolio to China. Also, the new facility is spread across 10.57 acres and will also house a testing facility. Besides that, the facility will also house a research and development facility.
CFMoto has been the official supplier for KTM motorcycles in China since 2011. The Chinese motorcycle maker began importing and assembling Completely Knocked Down (CKD) kits of the KTM Duke 200 and KTM Duke 390 from India. CFMoto holds a majority 51 % stake in the joint venture.
The new facility will see as many as 10 motorcycles being manufactured which will include not just the KTM middleweights but also CFMoto products employing KTM LC8 engines. These parallel-twin motorcycles will be sold in the Chinese domestic markets as well as those exported to Europe, the USA, Australia and ASEAN region, via the Completely Built Unit (CBU) route. In India and South America, these bikes will be imported in CKD kits.
KTM-CFMoto joint venture’s new Hangzhou manufacturing facility will help in freeing up the capacity restraint at the Austrian company’s home facility in Mattighofen. The facility in Austria has a maximum annual capacity of 2 lakh units. Apart from manufacturing units in the home country, Pune and Hangzhou, there are 6 other assembly plants where KTM bikes are assembled, 2 in Colombia (Medellin and Cartagena), and 1 each in Argentina (Buenos Aires), Brazil (Manaus), Malaysia (Jitra) and the Philippines (Laguna).