KTM Going After Southeast Asia with Philippines Plant

Google+ Pinterest LinkedIn Tumblr

The ASEAN market is a huge concern right now in motorcycling, with Southeast Asia proving itself to be a growth center for the motorcycle industry. This year we have already seen Harley-Davidson opening a plant in Thailand, following a move Ducati made a couple years back.

Those moves come not only because of the large riding populations that these countries hold, but also because of the burdensome tariffs that these countries impose on motorcycles.

Following suit now is KTM, as the Austrian company has announced a new production plant in the Philippines, which will service that local market, and the ASEAN region.

The push into the ASEAN market sees the creation of KTM Asia Motorcycle Manufacturing (KAMM) – a joint-venture partnership between Adventure Cycle Philippines and KTM. Through KAMM, the two parties plan to build a production plant that will have an annual volume of 10,000 units from its assembly lines.

KTM says that the Philippines plant will produce four street bike models: the KTM 200 Duke, KTM 390 Duke, KTM RC200, and KTM RC390. Initial production will be 6,000 units, before the company increases to five-figure production levels to accommodate regional demand, including sending bikes to China.

“This investment is part of our belief that manufacturing should be a key driver of our country’s growth going forward,” explained Dino Santos, President and COO of KTM Asia Motorcycle Manufacturing Inc. “It provides jobs, supply chain opportunities, and helps put the country in the map as a center for innovation and industrialization.”

In addition to the plant in the Philippines, KTM plans to open 30 dealerships in the ASEAN region during the 2017 business year.

Source: KTM