‘There’s a very bright future ahead for motorcycles…’
another 200 to take our headcount here in Austria to over 4000.
Are you looking at expanding production in 2021?
Yes, we will have a double-digit increase in sales, and also for sure we will also have a huge increase in production in India, because Bajaj are now building the small displacement Husqvarnas. They started in February, shortly before Corona showed up, and they’re selling quite well everywhere, including in India. Last month, 8000 KTMs and Husqvarnas were sold there – that’s a serious number. So we expect next year, around 160,000 or even up to 180,000 units will be coming from India.
Until now, the largest capacity bike that Bajaj makes for KTM is the 390, but you have the 490 twin coming, which will be the first multicylinder bike Bajaj have made. Is this still on schedule for 2022?
This is being 100% developed at the Bajaj R&D centre in Pune, but supported by our R&D guys. It’s a parallel-twin similar to the format we have on the 790/890, only 500cc. This is very important for our 125/200 and 390 Duke customers to trade up to, especially in developed markets as an A2 licence bike, while in the so-called emerging markets it’ll be a premium product. But it’s still under development, and so far we’ve not yet decided where we’re going to be producing that new range of 500s. It could also take place in China, because the transfer of our older 790 engine to CFMoto, our partners there, has worked quite well. Their new facility which they began building 18 months ago is now ready to go.
When do you expect to launch the 500cc twins?
Still in two years’ time, so 2022. But we will see different models, with Duke and Adventure versions in the KTM and Husqvarna lines.
Your relationship with CFMoto is becoming ever closer, what’s next? Yes, it is. We also handed over the 790 Duke as a package to them, so they can use this for future CFMoto models. So KTM will focus on the 890 in future, and therefore the 790, our original generation of parallel-twin, will go to China. But for marketing reasons we will call it the 750, and the 750 model line produced by CFMoto will be for global distribution, not just for China. This will be the entrance bike for the middleweight class, and as a second step, for sure, eventually the 890 will follow it to CFMoto, at least as a CKD operation for sale in China, which is becoming an evergreater market for us.
When do you expect to have the first KTM 750s from them?
We’re thinking that in March 2022, the first 750 will come from this model line. The first model will be the naked bike, the Duke, and this will be followed by the 750 Adventure bike.
How much of each complete 750 model will be sourced in China? Almost 100%. Maybe a couple of parts will come from us, where they are not yet able to get the fine tolerances necessary. The rest is entirely sourced in China.
Will there be any Husqvarna models in the 750 family?
For the first three or four years we’ll be focusing on the KTM, with the Duke and the Adventure, but we’re also thinking of reviving the old Supermoto. So that line will be the affordable 750 entrance for the KTM multi-cylinder family, at an appealing price, still with KISKA design. Basically, it’s a blueprint from the Bajaj operation, we’re going to be doing in the middleweight class in China with CFMoto the same as what we’re already doing in the entry segment up to 400cc in India. The midsize category is booming in China, so you must be there in that, but that also helps us with sales in mature and developing markets.
Is your plan to eventually manufacture the engines in China for the entire KTM parallel-twin engine family, then ship them to Austria for assembly?
I think such models would be 100% assembled in China. In Europe, I would like to focus firstly on the off-road competition bikes. With GasGas we now have three brands, so the engine technology supply chain needed for this is for high-end premium components that we’re not yet able to get in China or India. And secondly, the big bore or big displacement bikes - what I would call the real premium models must continue to be built in Austria. Because mainly owing to problems in sourcing extra workers I have a limited maximum production quantity here of 200,000 units a year, and if you’re growing hard as we are even in the middle of Corona, you have to figure out how to handle that. If you’re coming close to the ceiling, you have to start making fundamental decisions about what to manufacture where.
Will GasGas products continue to be manufactured in Spain?
No, we’re doing everything in Mattighofen, just like Husqvarna – they’ve already been on the production line here since the end of September. Only the trials bikes will stay in Spain.
So can we eventually look forward to a range of GasGas road models? Yes, why not? I feel already it could be a nice entry brand for younger customers in the smaller displacement category, which is the booming segment. It’s a fresh brand. Sooner or later for sure we’ll jump in to the 125-400cc on-road class, because it’s a young Spanish brand, and like KTM and Husqvarna, it’s also coming from off-road racing. Quite soon you will see GasGas in Moto3, always with a Spanish relationship, so with a Spanish team and riders. So for me, maybe in a couple of years you will see GasGas 125 streetbikes.
Racing to the front
And now KTM are a MotoGP winner with Binder and Oliveira… Honestly, I was expecting that in the second half of the season we’d be coming closer to taking the chequered flag, but it worked out already in the Czech Republic thanks to Brad Binder, and then later on with Miguel Oliveira at Red Bull Ring, which is a very special experience in your home country, even without any crowds. It’s right there alongside my first Dakar win – a historic day. Now I think we’re very close to the leading brands. Fortunately the virus has frozen the technical regulations - although unfortunately we are now losing the concession points! But we can still make some small improvements, and I’m convinced we’ll be racing consistently for the podium now.
Is the long desired RC16 customer bike ever going to happen?
That’s maybe one to develop next year, now we are MotoGP winners!
So how do you see the next model year playing out for your brands?
I see a very bright future for the powered two-wheeler. In the late ’50s and 1960s the motorcycle got replaced by the car for everyday transportation, but due to the virus, in many areas it’s coming back strongly, especially in urban areas because of restrictions aimed at saving the world from climate change via reduced or zero emissions. It’s interesting that the younger generation aged 16 years and up are interested in powered two-wheelers. Ten to 15 years ago they were ‘boring’, they were just something their dad did. Now, they’re booming again. There’s a very bright future ahead for all of us involved with motorcycles.