READY TO RACE: AYALA CORP. TO DISTRIBUTE, BUILD KTM MOTORCYCLES

AYALA CORPORATION, at the sidelines of its annual stockholders’ meeting last week, announced it had entered into a joint venture with KTM AG, a leading global motorcycle manufacturer based in Austria.

Under the agreement, Ayala will serve as the exclusive distributor in the Philippines of KTM products, and will also manufacture motorcycles for the domestic market, as well as export to China and other Southeast Asian countries.

“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 Fernando Zobel de Ayala, president and chief operating officer of Ayala Corporation.

The company said its new business venture will be housed under the Ayala Automotive unit, with production being subcontracted to IMI.

“This partnership is the first of many investments as we ramp up our manufacturing portfolio,” said Jaime Augusto Zobel de Ayala, chairman and CEO of Ayala Corporation. “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.”

KTM builds and markets a wide range of off-road and street motorcycles, and had been sold locally through at least two importers. The company’s CEO, Stefan Pierer said in a statement that KTM is “delighted to have found a strong and capable Asian partner in the Ayala group.”

“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,” Mr. Pierer said.