Austrian motorcycle manufacturer KTM has formed a new joint venture with Adventure Cycle Philippines, to form KTM Asia Motorcycle Manufacturing. Adventure Cycle Philippines is part of the AC Industrial Holdings Inc, a member company of the Ayala Group.
KTM has continued to expand its presence in Asia with the opening of a new factory in the Philippines, which it says will strive to produce 10,000 units per year.
KTM Philippines plant will produce four of the firm’s Street models – the 200 Duke, 390 Duke, RC 200 and RC 390. The plant will begin operation by producing 6,000 bikes for the Asian market, before increasing production up to five figures.
This latest facility is part of KTM global expansion, which is also part of its objective to meet demand in varied markets – both local to the plant and as far away as China.
As part of KTM’s expansion in the region they also plan on having 30 dealers in South East Asia by the end of 2017. Thus, in the future, Vietnam will have more opportunities to buy cheaper KTM. Thanks to the Trade Agreement AFTA between ASEAN countries which will be taken effect in early 2018, the CBU Motorcycles and motorbikes ifrom South East Asia to Vietnam will be tax incentives.