Austrian two-wheeler maker KTM Power Sports is developing three intra-city transportation models - a trike, a budget car and a scooter - in a joint collaboration with Bajaj Auto. Bajaj, India's second-largest motorcycle maker, owns 21 per cent stake in KTM.
All of the models will be marketed in developing countries and will have petrol, diesel and electric variants. KTM officials had earlier said that it was studying the possibilities of entering the small-car segment alongwith Bajaj.
Bajaj Auto, which is also one of world's largest three-wheeler manufacturers, will bring its expertise in low-cost engineering to the table. The Pune-based company recently unveiled its indigenously developed ultra low-cost car at the Auto Expo earlier this year.
When contacted, Rajiv Bajaj, managing director, Bajaj Auto, declined to offer any comments on the matter.
There is, however, no confirmation if the low-cost car will make its way to India as Bajaj Auto has already signed an agreement with Renualt and Nissan to develop a 'ultra low cost' car for the Indian market, which will be retailed at $2,500-$3,000.
The KTM-Bajaj car will be a four-seater urban runabout, which is under KTM's new 'innovative urban transportation concept'. Such vehicles are cheap yet frugal and fun to drive.
The scooter, however, will be made available in the Indian market and is already under development. A launch by 2010 launch is likely for the model.
The third vehicle - a trike (a three-wheeled motorcycle) - can have strong details in the area of styling besides being a load carrier. The product is not available in India currently but can be found in some of the western countries and also in Australia.
The Austrian company is also developing a sports utility vehicle, a first from the company whose main line of business has been off-road dirt bikes. The fuel-efficient yet capable off-roader will offer the comfort a 4X4 drive.
As a result of the recent stake hike by Bajaj Auto, KTM now has Rajiv Bajaj on its board and the cooperation agreement between the two companies covers product development, technology, vendor sourcing and distribution.
KTM will also sell its bikes in the Indian market through the Bajaj Auto alliance. According to the agreement that was signed early this year, Bajaj will assemble KTM bikes, including the 690 Supermoto and 690 Duke, at its facility in Chakan, Pune. Both bikes are scheduled to be launched before year-end.
