Ayala Corporation has entered an agreement with Austria-based KTM Group to produce and distribute KTM motorcycles in the country, and to tap export markets. The announcement was made last Friday by Ayala Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala during the company’s annual stockholder’s meeting.
KTM AG is world-renowned brand that develops and produces motorized vehicles for recreation including the KTM and Husqvarna brands.
The KTM group includes 39 subsidiaries, located in Austria, the United States, Japan, South Africa, Mexico and India and in various other countries of Europe and Asia.
Through the joint venture with KTM AG, Ayala will both serve as the exclusive local distributor of KTM products and to manufacture motorcycles for the Philippines and for export to China and Southeast Asian countries.
“We are delighted to have found a strong and capable Asian partner in the Ayala group, one of the leading conglomerates in the Philippines, a country we view as a key platform for achieving our global growth strategy. Ayala’s capabilities in manufacturing, distributorship and dealership, as well as its regional expertise and excellent reputation, make them the ideal strategic partner for our ‘Ready To Race’ aspirations. We look forward to a long and fruitful relationship and plan to rapidly grow KTM and its brands across Asia,” said Stefan Pierer, KTM CEO.
“We are very excited to introduce KTM and its lineup of outstanding performance motorcycles to the Philippines. For decades, KTM has been at the forefront of motorcycle engineering and technology, building vehicles that are ‘Ready to Race.’ This venture will enhance our existing offerings under our automotive group and allow us to serve more of the country’s growing mobility needs,” said Ayala Corp. president and Chief Operating Officer Fernando Zobel de Ayala.
The new business will be housed under the Ayala Automotive unit, with production being subcontracted to Integrated Micto-Electronics Inc. that is part of the Ayala Group.
“This partnership is the first of many investments as we ramp up our manufacturing portfolio. Over the years, we have built a long track record of excellence in manufacturing and engineering. We believe that manufacturing should be a critical component for the country’s growth moving forward, providing thousands of jobs, creating numerous ancillary business opportunities, and helping drive inclusive growth for the Philippines,” said Jaime Augusto Zobel de Ayala.