KTM and

Bajaj
KTM Company Profile
Austria Based company
Engaged in production, development and distribution of power sports vehicles.
Operates through two divisions: KTM and Husqvarna
Operates through subsidiaries and sales offices in Europe, Asia, US, Mexico, South Africa
Maximum revenue coming from Europe (48%) followed by North America.
Major products include Motorcycles, Sports car (X-Bow) , ATV, Spare parts, Apparel
KTM Internationalization
Started with exports in 1953 followed by first subsidiary in 1978.
Focused on market entry strategies with low resource transfer and low level of control.
18 fully owned subsidiary in five continents.
Additionally KTM created joint ventures with partners in Dubai, New Zealand and Philippines.
Acquired Swedish motorcycle manufacturer Husqvarna in 2013.
In 2007, Bajaj entered into joint venture with KTM.
Market Overview Asia pacific
China is the largest market in the region with 17% of the market value.
Total revenue of $48,000 representing a compound annual growth rate of 2.5%
Motorcycles sales are highest in this region comprising 77% of market volume.
Decline in Chinese and Japanese markets
High growth in Indian market because of improved infrastructure.
Entry of Major players like Harley Davidson, BMW, Ducati.
Five Forces Analysis – Asia Pacific

Buyer Power: Moderate as customer loyalty reduces buyer power

Supplier Power: Moderate as manufacturers have low switching costs
Threat of new Entrants: Low as market is saturated with four major players.
Threat of Substitutes: Low as other alternatives are not economical.
Industry Rivalry: High as presence of big four increases competition.
 Market Share – ASEAN region
Singapore Market share Indonesian Market No. of Motorcycles and scooters sold in
ASEAN Region

22% 7 6.38

4%2% 6

39%
5

Units in Millions
3%
30%
4
4%
64% 3
1.79
1.59
2

1 0.47
0.01

32% 0
Indonesia Thailand Phillippines Malasiya Singapore
ASEAN Countries
yamaha Honda Suzuki KTM other Astra Honda Yamaha Suzuki Other