Austrian motorcycle company KTM, part-owned by Bajaj Auto, is reported to be in advanced negotiations with BMW for the sale of its group subsidiary Husqvarna. BMW bought Italian firm Husqvarna from MV Agusta in 2008. When contacted Bajaj Auto refused to comment on the matter.
European media has been speculating over the possible acquisition by KTM and what it would mean for its Indian part-owner Bajaj Auto.
BMW has reportedly invested a significant amount of money in revamping Husqvarna's entire product portfolio. Although there are no confirmations available, sources say the final announcement could come in the next one week or so.
Husqvarna has a range of off-road, supermoto and street bikes, including the Nuda 900 and TR650 range of street bikes, SMR 630, 511, 125 and SMS 125 range of supermoto bikes, the TXC cross country range, the TE Enduro range as well as a mini cross range. Sources say BMW, apart from investing in product development, has also pumped in manhours and money into R&D and overhauling of some of the company's product architecture.
Analysts say if the deal goes through it will offer Bajaj Auto with a range of serious off-road products with proven credentials and a pipeline for the future
as well. Bajaj has been introducing KTM products in the Indian market to target the higher end leisure/lifestyle segment as opposed to the commuter segment that forms the bulk of motorcycle sales in India. The latest product that is reportedly due for launch in India is the KTM Duke 390 which is expected to debut by March 2013.
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