Bajaj Auto plans to roll out Husqvarna bikes in 2017

Bajaj Auto, the second largest manufacturer and largest exporter of motorcycles from India, is likely to  commercially launch the Husqvarna brand of motorcycles in the domestic markets in 2017.

Three industry sources have confirmed to Autocar Professional that Bajaj Auto has already started making way for the production of Husqvarna motorcycles at its Chakan plant, which also houses the production setup of models made under the KTM brand.

The Chakan facility currently manufactures 125cc, 200cc, 249cc and 375cc KTM motorcycles for the domestic as well as export markets. Additionally, the plant manufactures a range of models under the Pulsar and Avenger brands. Bajaj Auto’s Chakan facility, which has a production capacity of up to 1,200,000 units annually, is believed to have been operating tight on its production capacity.

According to the sources, it seems that the company has shifted some part of production (under Pulsar and Avenger models) from Chakan to its Waluj plant recently.

A source revealed that “activities pertaining to the manufacture of new motorcycles under the Husqvarna brand have already started at Chakan. The company has expanded its production capacity at Waluj (Aurangabad) to accommodate additional production shifting in from Chakan. The teams are busy planning and upgrading the assembly lines.”

It is learnt that the Husqvarna brand could be launched in India as early as Q1-Q2 CY 2017.

“The facility is being readied for the production of Husqvarna motorcycles. Bajaj Auto is following a timeline of March-April 2017 for readying production models under the Husqvarna brand in India,” confirmed another source.

It can be recalled that Stefan Pierer, CEO and chairman of the executive board of KTM AG, had earlier spoken about the company’s intent of manufacturing Husqvarna motorcycles at one of Bajaj Auto’s plants in India.

Husqvarna was bought over by its rival KTM in January 2013 from BMW as a consolidation move. Pierer had then revealed that he plans to double the sales of the Husqvarna brand, which is known for its sturdy, single-cylinder, off-road motorcycles, in five years globally. Reports suggest that the total sales of Husqvarna brand stood around 10,000 units in 2012.

Industry experts point out that just like the manufacturing competencies (large-scale, low-cost manufacturing) of Bajaj Auto in India helped both the parties (Bajaj Auto and KTM) grow their respective businesses; the production model under Husqvarna will also follow the same. It is thus understood that the company will bank upon the synergies between both the brands (KTM and Husqvarna) in terms of technology, vehicle platforms, engines, shared components, distribution and logistics and other heads.

KTM’s 2014 annual report quotes, “Since becoming a part of KTM, the Husqvarna Motorcycles brand has been able to re-strengthen its international reputation for producing high-quality, high-tech premium motorcycles in a very short period of time. 2014 has been a momentous year for the Husqvarna brand. Record figures in sales and turnover were reached, with a total number of 16,337 motorcycle sold.”

The report also highlights that the brand achieved a turnover of more than EUR 100 million in 2014 for the first time under KTM’s leadership, which is known to have given a new direction of developing street bikes to the Swedish brand.

On the other hand, in 2015, KTM registered total sales (including all brands) of 180,801 units, which was up by 14 percent over 2014, according to the company. The company also achieved sales of EUR 1.02 billion for last year, its highest ever.

An official release reads, “KTM increased again both sales and revenue and achieved a record year in 2015, for the fifth time in a row and therefore exceeded the billion-euro sales mark for the first time. Therefore, KTM is the fastest growing motorcycle brand in the world for years. In business year 2015, 180,801 bikes of the group brands KTM and Husqvarna could be sold worldwide and therefore sales increased by 14 percent compared to the previous year. Revenue could be increased by 18 percent to 1.02 billion EUR within the same period.”