KTM AG has entered a joint venture with its long-term partner CF Moto, to expand its market presence in China.
The joint venture is named as CFMoto-KTMR2R. In the joint venture agreement, CF Moto holds the majority stake with the Mattighofen-based company holding 49%. The competent authority on the CF Moto side is yet to give permission for the venture. The Austrian brand says that the venture will not only help enhance KTM’s business in the Chinese market but also collectively develop and manufacture products for the global market as well.
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CF Moto was founded in 1989. It manufactures two-wheelers, All Terrain Vehicles, utility vehicles, boat and powersports engines. The brand has developed 98 vehicles and 51 models engines, which are distributed in over 70 countries.
KTM, in the Indian market has partnered with Bajaj to make cost-effective sub-400cc motorcycles. The Indian brand has a 48% stake on KTM. The Austrian company also has a long-term license agreement for the Husqvarna brand, signed in 2013. Bajaj is planning to bring Husqvarna into the country. The bikes will be made in India, at Bajaj’s Chakan plant in 2018. Bajaj believes that Husqvarna will appeal to a larger population than KTM.
