Assembly Plant to Open in Q1 2017
Austrian adventure motorcycle brand KTM is set to change the game in the Philippine motorcycle industry as it announced the forthcoming opening of its flagship dealership in the country as well as the development of its assembly plant in Santa Rosa, Laguna.
A month after the Ayala Group of Companies announced a joint venture between the Ayala Automotive Holdings and KTM AG, the newly formed Adventure Cycle Philippines Inc., the official motorcycle distributor of KTM, housed under Ayala Automotive Holdings Corporation, held a media forum last week to announce their plans in the country.
KTM is world-renowned brand that develops and produces motorized vehicles for recreation including the KTM and Husqvarna brands.
KTM is known for its 2-stroke and 4-stroke off-road motorcycles though in recent years it has expanded into street motorcycle production and developing sports cars.
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.
By 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.
Ayala Automotive president and Chief Executive Officer JP Orbeta confirmed Ayala’s support and commitment to this endeavor, and said, “Ayala Automotive is excited to expand its portfolio and enhance the group’s offerings to the market. We are excited by our entry into the motorcycle space and are in full support of this business. We remain committed as a group to providing the market the products and after-sales service it deserves.“
Adventure Cycle Philippines Inc. (ACPI) aims to open 35 new dealerships with prospective partners nationwide. This is in addition to the seven current dealerships in the country.
The flagship dealership is expected to open in Bonifacio Global City area in Taguig City by the third quarter of this year.
According to Santos, the new KTM dealerships will showcase the full-model line-up of KTM adventure motorcycles including the MX, Enduro, Freeride, Supermoto, Travel, Naked and Supersport.
“Our goal is to penetrate all major cities in Luzon, Visayas and Mindanao with KTM dealerships. We will ensure that our customers will have access to the full range of KTM motorcycles. At the same time, we will make certain that motorcycle service and maintenance is available in all the KTM dealerships,“ ACPI Chief Operating Officer Dino Santos said.
At the same time, Santos revealed that an assembly plant is currently in the development stage, and they expect it to be completed by the first quarter of 2017. The plant, according to Santos, will have an annual production capacity of 20,000 units. Initially, however, ACPI plans to build 6,000 units during its first year of operation with 4,000 of those to be exported to China and other Southeast Asian countries.
To begin with, ACPI will be assembling complete know-down (CKD) units of the Duke 200, Duke 390, RC300 and RC390 models. As demand grows, more and more parts will be sourced locally, which will provide local employment.
“We expect production to increase year after year as the demand in the country as well as the region also increases,” Santos added.
KTM Southeast Asia representatives, Managing Director Julian Legazpi and Country Manager Zigmunds Steinbergs, were also present during the event. “We are excited to paint the Philippines orange with our esteemed partners – Ayala. Without a doubt, the country is now Ready To Race!“ Legazpi said.