India’s second largest two wheeler manufacturer, Bajaj Auto has further increased its stake in KTM Power Sports. With additional 6.3%, Bajaj Auto now holds 47% stake in the company making then the second largest share holder in KTM. India’s second largest two wheeler company has purchased this additional stake through the open market and via Bajaj Auto International Holdings based in Netherlands.
Besides Bajaj Auto, Stefan Pierer and Rudolf Knuenz hold 51% share in the company and though Bajaj Auto are increasing their holdings the company sources have confirmed that they do not want to become a majority share holder. Bajaj Auto began their association with KTM in 2007 when they purchased a 14.5% stake for Rs.300 crores. Ever since then they have been purchasing shares in the company through the open market.
Despite the fact that two wheeler markets in both Europe and USA dipped by 5%, KTM increased their turnover by 13.4% to 526.8 million and volumes by 22.4% to 81,200 vehicles in 2011. Both partners are already working on bringing out new engines and platforms while relying on each other’s networks across the globe to increase volumes and profitability.
Since the start of this year, KTM has taken over from BMW as being the largest selling two wheeler brand in Europe. Both the Duke 125 and Duke 200 are best sellers for the company and KTM sold nearly 8,400 units while BMW could sell only 8,250 to 8,300 units. The company has plans to sell between 25,000 to 30,000 motorcycles in India during the year while they are targeting 200,000 units globally by 2015.