Let’s play a game for a minute. Who is the third largest motorcycle manufacturer in the world? One of the Big Four maybe (Honda, Kawasaki, Suzuki, & Yamaha), that is after all what their name implies, right? Maybe you think it is a European manufacturer, like BMW or Triumph? If these were any of your answers, thank you for playing, but please try again.
For some, the KTM 125 Duke is just not quite enough machine to get their two-wheeled juices flowing, and thus the KTM 200 Duke & soon-to-be-expected KTM 350 Duke were born. With the Austrian motorcycle maker KTM partnering with India’s second-largest motorcycle brand Bajaj to make the baby Duke, it should come as no surprise then that many of these models are ending up outside of Europe, and in Asian markets…namely India itself.
While us Westerners might think of the KTM 200 Duke as a fairly practical machine, buyers in India are a bit more skeptical, since their day-to-day travel can be a bit more varied than ours. You see, India right now is preparing for its summer monsoon season, and flooding in certain regions is more of a certainty than a special phenomenon. So while an underslung exhaust might look stylish to us Americans, to an Indian motorcyclist it could look to be more of a liability.
Hoping to purge that thought from Indian riders’ minds, KTM has put together this video outlining its wet-weather survivability testing. If you ever wanted to know whether you can park the KTM 200 Duke in wheel-high water for 30 minutes or more sans snorkel, check out the video after the jump.
As several of our readers pointed out in the latest financial report from Honda, The United States, and North America as a whole, represent just a very small portion of Big Red’s total volume of motorcycle sales. For Honda’s 2011 fiscal year, North America sold a whopping 1.6% of the company’s total motorcycle inventory, while Asia accounted for nearly 79% of Honda’s total sales.
While Honda and other motorcycle manufacturers certainly makes better margins on the units they sell in North America and in Europe, the volume opportunities abroad in emerging markets are far more lucrative for OEMs.
With 1.2 billion people (17% of the global population) and still growing, India is the shining star in emerging markets, so it should come as no surprise that Honda is forecasting that 30% of its business will come from India by 2020, as the Japanese company further increases its presence in Asian markets.
Jerez is to remain on the MotoGP calendar for at least one more year. Dorna CEO Carmelo Ezpeleta announced the extension during the official presentation in Madrid of this year’s Spanish GP at the iconic Jerez circuit, stating that Jerez will stay on the calendar for 2013. He also confirmed that from next year, there will be just 3 races on the Iberian peninsula (Spain and Portugal), with Jerez and Aragon certain to stay, while Barcelona and Valencia could alternate, as is currently being proposed for Formula 1. Meanwhile, the Portuguese Grand Prix at Estoril appears destined to disappear from the calendar.
Rumors surrounding the fate of the Jerez Grand Prix had been circulating for a while, with the circuit still in financial problems over non-payment of debts to the consortium that carried out remodelling work at the circuit back in 2001. It was widely expected that Jerez would be dropped from the calendar, but sources close to the circuit owners were confident of being able to continue. Though the official confirmation is only for 2013, the chances of the race remaining at the track for the next five years look very good.
Seeing its 27-year-long joint-venture with Honda come to an end last year, Hero MotoCorp has been picking up technology partners with an intense pace. With its 2014 rapidly approaching, Hero already counts Erik Buell Racing as one of its technical partners (as well as a potential acquisition target), and now Hero has now announced that the Austrian engineering design firm AVL will help the Indian company with a new range of larger-dipslacement motorcycle motors.
The move towards larger displacement engines is surely a sign that Hero MotoCorp has its eye on the export market, as it already accounts one of every two motorcycles sold in India. Surely seeing the work that rival Bajaj has done with KTM and the Duke series of motorcycle, we can expect Hero to go after a similar position in Europe, with even larger models for the American market.
If you want a quick synopsis of how the European motorcycle brands performed in 2011, they killed it. BMW, Ducati, Triumph, and now KTM have all reported double-digit sales growth figures for 2011, a stark contrast to the still struggling sales of Harley-Davidson, Honda, Kawasaki, Suzuki, and Yamaha. Reporting a 22.4% sales increase last year, KTM made a cool €20.7 million in the process of selling its 81,200 units in 2011 (KTM sold 66,327 units in 2010).
Leading the Austrian company’s growth was the KTM 125 Duke, which has been a huge hit in India, its country of origin, but has also helped grow KTM’s market share in Europe. KTM is also reporting that its latest EXC models have helped spur sales, but we suspect it is the new small-displacement Duke, which was made with developing markets in mind, that is really responsible for the surge in sales growth. KTM says that it expects sales in Europe and North America to remain flat, while the company expects to see growth in emerging markets continue (no surprise there).
It may be nearly the end of the year, but the Triumph Motorcycles Group has released its financials for the first half of 2011 (Q1 2011 & Q2 2011). Selling 48,684 units worldwide, Triumph saw a 7% increase in unit sales when compared to the first half of 2010. This sales increase brought an 11% boost in revenue, which totaled £312.4 million. Triumph attributes the sales and revenue boost to the incremental models that have been added to the range, like the Triumph Tiger 800/800XC and Triumph Daytona 675R.
The company’s operating profit also grew over the same time period, with earnings before interest and taxes (EBIT) growing from £15.1 million to £22.3 million. This 47% gain in income is quite the coup for the small British brand, which is showing strong performance in an otherwise horrible market. With the 500cc motorcycle market down nearly 50% from where it was before the recession, 2011 has similarly been doom and gloom, down nearly 7% worldwide, though the turbulent sales numbers do appear to be bottoming out.
Back in 2009 Suzuki and Volkswagen made some headlines, as the German automaker took a 19.9% stake in the Japanese manufacturer. The basic points of the agreement were that Volkswagen would get access to Suzuki’s small-displacement motors and Indian presence, while the latter would benefit from Volkswagen’s larger-vehicle technologies, etc.
Seemingly however doomed from the start, the partnership in motorcycle circles erroneously spurred some interesting thoughts of a Volkswagen motorcycle coming to fruition. While industry journalists spun gold out of hay, the two behemoth manufacturers failed to come to terms on any of their proposed partnership goals, leaving both parties to wonder why they were interested in each other, let alone financially intwined.
Bajaj Auto has an insatiable appetite for KTM, and the Indian company has slowly been gobbling up KTM stock, and now is just under a 40% shareholder in the Austrian motorcycle company. With Cross Industries AG holding 51% of the company in its control, the Austrians have made it clear that they will not give up majority control of KTM, especially to the Indian automotive company. However, analysts are predicting Bajaj could take its partnership with KTM to its limit, purchasing up to 49% of the company’s stock.
After first announcing that KTM would build a 200cc model of the new KTM 125 Duke for the Indian market, KTM CEO Stefan Pierer has been quoted as saying that a larger, 350cc, model is in the works, and will debut as a 2013 model year motorcycle. It would seem that the 2012 KTM 350 Duke is also slated as an India-only model, though rumors and plans for a larger displacement Duke for the US market were banded about when the 125cc Duke launched at EICMA last year.
KTM seems set to take the 125 Duke platform as versatile bike for the global markets, matching configurations with localities. Since the 125cc format makes little sense in the United States (do you hear that Aprilia?), expect at least a 250cc version of the Duke to debut later this year, and likely a larger format (450cc?) as well for the US at a later point in time.