Bajaj Auto tightens its hold on KTM Power Sports by buying another 6.3% stake.

Bajaj Auto has tightened its grip over the Austrian Motorcycle KTM by buying another 6.3%, taking its total tally in the Austrian motorcycle to a little over 47% . Bajaj Auto is the second-largest shareholder in KTM. Other large shareholders include Stefan Pierer and Rudolf Knuenz-hold more than 51% stake. Currently Bajaj Auto are only willing to be the minority stake holders in the Austrian Motorcycle KTM .

Bajaj and KTM are working together well as a team , KTM is helping Bajaj by providing technical assistance whereas Bajaj has provided a great platform for KTM to launch its Duke series under its name . Bajaj launched the KTM Duke 200 a few weeks ago , and the response that the Duke 200 is receiving is tremendous .

Over the next few years now Bajaj Auto,  will launch bigger and more powerful Pulsar and KTM motorcycle models in the 200cc to 700 cc range will take on rivals Honda, Yamaha and Suzuki and build on its leadership position in the premium motorcycle space.
Bajaj aims to position the Pulsar in the value-for-money sports bike segment and Austrian partner KTM's motorcycles at the premium end of the market.

This strategy of KTM-Pulsar acting together in the sports segment is a valid strategy anywhere in the world not just in India and they will look at leveraging this in many of the overseas markets in Latin America, Africa and South East Asia .

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Hero MotoCorp teams up with engine developer AVL .

After the  the major announcement regarding their tie-up with Erik Buel Racing for technological assistance and cutting edge performance , the company has announced it would making its own engines by teaming up with the world’s largest privately-owned engine developer, AVL of Austria..

Hero MotoCorp has finally decided to get things moving with regards to its technology deficit. Hero MotoCorp had split up with their Japanese partner Honda however there is no stopping them after the split-up. They have been headlining regularly.

Pawan Munjal, MD & CEO Hero MotoCorp was quoted as saying, “We have tied up with AVL to develop our in-house capabilities in engine technologies. A team from our R&D division is already in Austria. Our team is also working in close coordination with AVL ITC ( India Technical Centre) based in Gurgaon. The team is working on a few options across motorcycles and scooters.”

A couple of days back In a landmark development, Hero MotoCorp had announced forging a strategic partnership with Erik Buell Racing (EBR) of the US, encompassing multiple areas of collaboration. EBR will help Hero Motocorp to provide technological assistance in getting some big machines in the Indian Market whereas its technology tie-up with Austria-based AVL will allow Hero MotoCorp to develop technology for its bread-and-butter 100cc bikes such as Splendor and Passion.

This tie-up with AVL means that Hero MotoCorp can now come up with new engines for Indian bikes without having to look at other manufacturers. "We would be developing engines of all sizes to make new products and also refurbish the existing product lines. Gradually we will develop our own full-scale R&D facility to make products for global market on our own. The multiple technology and engineering would leapfrog to the next level even as we internally enhance our R&D to make products for trans-continental markets," Munjal added. This all also means that the Indian manufacturer will be seen working on engines beyond the 100-223cc range. 

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Hero MotoCorp in Talks on Possible Ducati Acquisition.

Just a couple of weeks ago, we had informed you that Iconic Italian motorcycle maker Ducati is up for sale , possibly considering Volkswagen and BMW as potential suitors. Then a week ago, up pops Hero MotoCorp in a deal with Erik Buell Racing, showing they have intentions beyond the small displacement motorcycles they're currently known for. Now, in what has to be one of the more surprising developments in all of this, word is out that Hero MotoCorp is talking to bankers about a possible acquisition of Ducati. Wow! I guess they really are trying to expand into another market.

"We’ve been seen as a utility-bike maker, fuel-efficient bikes, and somebody who’s at the lower level of the market, who’s more small-town and rural-market focused," said Munjal. "So our ambition is to become one of the biggest global two- wheeler players and to do that, you cannot only be in one small segment"

This may be very preliminary and no one is going to be talking about it outside the boardrooms where the discussions are taking place, but what is becoming clear is many more buyers may be getting into this game than everyone initially thought.

Ducati currently sells a range of motorcycles in India including the Ducati Monster, the Ducati Hypermotard, the Ducati 848, the Ducati 1098 and the Ducati Diavel. Ducati sells over 40,000 motorcycles across the globe and has been in existence for over  86 years. Bologna headquartered Ducati has had a series of owners in the past. Meanwhile, here is official word regarding this development from Andrea Bonomi, Invest industrial’s chairman,

Ducati is now a perfect company but the further growth it requires needs the support of a world-class industrial partner. This year, we will work towards that partner. A handful of industrial groups in Asia, Europe and the US were interested in Ducati

 Let's see, a company manufacturing motorcycles in Italy, with its largest market in the USA and owned by a company in India. Would it be any different if they were owned by a company in Germany? Does any of this even matter any more? Hero MotoCorp certainly wouldn't be the first name to pop up when you think of a Ducati sale, but it does make you wonder who else may be interested in the Italian manufacturer.
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