India's second-largest motorcycle maker Bajaj Auto Ltd has acquired a 14.5 per cent stake in Austria's KTM Power Sports, one of Europe's largest sports motorcycle manufacturers, it was announced on Monday.
KTM will provide the know-how in the joint development of water-cooled 4-stroke 125 and 250cc engines, to be used as the basis for products from both companies.
Bajaj will take over the sales of KTM products in India and South-East Asia, opening up the Asian market for the Austrian producer.
Bajaj acquired the KTM stake through its 100 per cent owned Dutch unit for three billion rupees ($A83.07 million), the company said in a statement.
KTM CEO Stefan Pierer welcomed the development, saying the cooperation was a great chance to "strengthen the KTM Group in its sustained growth strategy in a global environment".
KTM is listed on Vienna's stock exchange and reported revenues of 599.1 million euros ($A944.06 million) in the previous business year.
Bajaj Auto Ltd ranks among the world's top five motorcycle producers, reporting revenues of 2.9 billion euros ($A4.57 billion) and 220 million euros ($A346.68 million) consolidated net profits.
© 2007 AAP
KTM will provide the know-how in the joint development of water-cooled 4-stroke 125 and 250cc engines, to be used as the basis for products from both companies.
Bajaj will take over the sales of KTM products in India and South-East Asia, opening up the Asian market for the Austrian producer.
Bajaj acquired the KTM stake through its 100 per cent owned Dutch unit for three billion rupees ($A83.07 million), the company said in a statement.
KTM CEO Stefan Pierer welcomed the development, saying the cooperation was a great chance to "strengthen the KTM Group in its sustained growth strategy in a global environment".
KTM is listed on Vienna's stock exchange and reported revenues of 599.1 million euros ($A944.06 million) in the previous business year.
Bajaj Auto Ltd ranks among the world's top five motorcycle producers, reporting revenues of 2.9 billion euros ($A4.57 billion) and 220 million euros ($A346.68 million) consolidated net profits.
© 2007 AAP
