Bajaj Auto Ltd. plans to increase its holdings in KTM Power Sports AG to over 25 percent. The plans were revealed at the ongoing Auto Expo 2008 in New Delhi, where Bajaj is displaying a range of KTM models.
Bajaj acquired a 14.5 percent stake in KTM in November 2007 for nearly $76 million. The Indian company then quickly raised its stake to 20.89 percent. The two firms plan to jointly develop 125cc and 250cc models, which will be branded KTM. They may also develop a range of scooters for Europe.
Bajaj is India's second largest motorcycle maker, smaller than Honda Motor Scooter India but larger than TVS Motor Co. Ltd. It operates four production facilities and also markets bikes developed via a 32-year partnership with Japan's Kawasaki Heavy Industries.
The Pulsar DTS-i is the latest Bajaj motorcycle developed in partnership with Kawasaki. Notice the similarities to the Z750.