KTM in India: The Rise, the Ride, and the Chapri Tag

The Beginning of My KTM Journey

The year 2012 was significant for me in two ways. First, I successfully cleared my II PUC boards in Karnataka and secured a good score in the KCET exams, which earned me a merit-based seat at RV College of Engineering. Second, it was the year that the KTM Duke 200 was launched in India at an ex-showroom price of around INR 1,17,000.

Since I got into college on the basis of my KCET ranking, my tuition fees were lower. I decided to use this to my advantage and convinced my parents that I would only pursue engineering if they bought me a KTM Duke 200. My father was shocked. He had a decent job and was content with his Hero Honda Splendor, yet here I was, demanding a high-performance European bike just for commuting to college. After much pleading and many promises—including a pledge not to bunk classes (which I broke on my very first day)—the "Orange Beast" arrived home in June 2012.

During my college days, having a KTM Duke or an iPhone was the key to making an impression. Unlike today's trend of loose-fitting Korean clothes, back then, a powerful bike symbolized status.

The Arrival of KTM in India

Before KTM entered India, the 150cc+ segment was dominated by Bajaj Auto’s Pulsar series. Bajaj was a leader in visibility, product quality, and technology, holding nearly 50% of the domestic market share in this category. Seeking to further strengthen its position, Bajaj Auto strategically partnered with KTM, Europe's second-largest sports motorcycle manufacturer.

In November 2007, Bajaj acquired a 14.51% stake in KTM Power Sports AG for €58.62 million (INR 345 crore). By March 2008, this stake increased to 24.45%, and over the years, Bajaj gradually expanded its ownership to 47.96% with an investment of €197.9 million.

Why the Bajaj-KTM Partnership Made Sense

KTM had a strong brand presence in Europe, the US, and Japan, but it lacked economies of scale for mass production. Bajaj Auto, on the other hand, had manufacturing efficiency and cost advantages. The collaboration allowed KTM to leverage Bajaj’s production expertise, while Bajaj gained access to KTM’s cutting-edge technology. This synergy led to the joint development of powerful yet affordable motorcycles for emerging markets.

The first product from this collaboration, the KTM Duke 125, was launched in Europe in 2011 and was manufactured at Bajaj’s Chakan plant in Pune. The same platform was later adapted for the Indian market, leading to the debut of the KTM Duke 200 in January 2012.

The KTM Duke 200 Takes India by Storm

To establish itself in the premium segment, Bajaj launched the KTM Duke 200 through exclusive KTM dealerships in major Indian cities. Unlike the KTM Duke 125, which was tailored for Europe, the Duke 200 was designed for both Indian and international markets.

In its first year, Bajaj Auto produced 26,805 units of KTM Duke motorcycles, with 7,399 units sold in India and 18,546 exported. The Duke 200 quickly gained a fan following due to its powerful single-cylinder engine, six-speed transmission, and fuel efficiency.

The Rise of the KTM Duke 390

Building on the Duke 200’s success, Bajaj and KTM introduced the Duke 390 in 2013. This model featured a more powerful engine and ABS as standard. The Duke 390, with its signature orange frame and alloy wheels, became immensely popular among urban youth, reinforcing KTM's position in the Indian sports bike market.

Sales Growth and Market Expansion

KTM’s presence in India grew rapidly:

• FY 2012-13: 7,399 units sold
• FY 2013-14: 11,050 units sold
• FY 2014-15: Sales more than doubled to nearly 23,000 units, including the new KTM RC 200
• FY 2017-18: 46,321 units sold. KTM was available through 425 showrooms in India, the largest dealer network for a premium motorcycle brand
• FY 2018-19: 50,705 units sold. India became KTM’s largest market globally, surpassing the USA, with over 50,000 units sold
• FY 2019-20: 63,187 units sold. KTM crossed the 60,000-unit mark, growing at 26%, even as other brands declined

Despite challenges during FY 2021-22 and FY 2022-23 due to COVID-related disruptions and semiconductor shortages the sales were 50,948 units and 52,981 units respectively.  

KTM rebounded in FY 2023-24 with the launch of the third-generation Duke 390 and Duke 250. Sales improved significantly, reaching 64,886 units—the highest since its launch in India.

KTM's Brand Promotions

In December 2019, KTM participated in the India Bike Week in Goa, showcasing its international range and inviting top KTM athletes for stunts and interactions. The event further solidified KTM's dominance in India's premium sports bike segment.

The Impact of Bajaj’s Investment in KTM

KTM’s Growth Post-Investment

Since Bajaj's investment in KTM, the Austrian brand has experienced remarkable growth in both sales and revenue. In 2008, KTM sold approximately 64,080 units. By 2020, this number had surged to 2,08,852 units, showcasing the effectiveness of the strategic collaboration.

Financially, KTM’s turnover increased from €454.62 million in 2008 to €1.41 billion in 2020. Moreover, the company transitioned from a reported loss of €81.43 million in 2008 to a profit of €71.20 million, marking a significant turnaround.

Bajaj’s Gains from KTM Investment

From FY 2012-13 to FY 2020-21, Bajaj produced a total of 7,28,487 KTM bikes at its Chakan plant in Pune. Of these, 3,30,679 units were sold in India through KTM’s dealer network, while 3,90,837 units were exported to international markets, including Europe.

Given that Bajaj held a 47.96% stake in KTM, its share of KTM’s net profits was reflected in Bajaj Auto Ltd’s consolidated financial statements. From 2012 to 2020, Bajaj Auto accounted for a total of €277.62 million in KTM’s net profits. Additionally, Bajaj received €75.27 million in dividends during the same period, further solidifying the financial benefits of its strategic investment.

This collaboration has not only strengthened KTM’s presence in India but has also positioned Bajaj as a key player in the global sports bike segment, creating a win-win situation for both companies.

What Has the Government Earned Because of the KTM Craze?

The GST rate on motorcycles with an engine capacity up to 350cc is 28%, which is included in the ex-showroom price. The ex-showroom price of the KTM Duke 200 is currently INR 2,03,630.

For simplicity, let’s assume the ex-showroom price remained constant at INR 1,50,000 per unit from FY 2012-13 to FY 2023-24. The GST component per unit is approximately INR 32,813 (INR 1,50,000 * 28% / 128%).

With 4,99,494 units sold during this period, the GST revenue earned by both Central and State Governments is around INR 1,638 crore (INR 32,813 * 4,99,494 units).

Additional revenues come from the RTO, which is a state subject. Assuming an RTO rate of 10% on the same ex-showroom price, the RTO collected could reach INR 749 crore (INR 1,50,000 * 10% * 4,99,494 units).

Further earnings include Cess at 10% of the RTO, Infra Cess at 10% of the Cess, and income tax on Bajaj Auto’s profits from KTM sales.

A Personal Reflection on KTM’s Legacy

While the KTM brand has achieved remarkable success, it has also acquired the reputation of being a "Chapri bike." The term "chapri" is often used to describe flashy young individuals known for loud modifications, aggressive riding styles, and social media flexing. 

However, this stereotype does not define all KTM riders. Many biking enthusiasts genuinely appreciate KTM for its engineering, performance, and riding experience.

For me, KTM was never just about the image—it was about the experience. Whenever life felt monotonous, a ride on my Duke 200 brought excitement and peace. Unlike the loneliness often spoken about by today’s youth, my motorcycle rides were my escape. The “Orange Beast” played a crucial role in my college life and helped me stay motivated. 

In November 2024, I added the new 3rd Generation - Duke 390—my “Yellow Beast”—to my garage. Yet, my first love, the Duke 200, remains in running condition and will always be my “Orange Beast.”

Looking back, had I invested INR 1,60,000 in Baja Auto Limited during 2012, it would have grown to INR 7,26,784 (1,60,000 * 454.24%) today—enough to buy three Duke 200s! But no regrets—because KTM gave me memories that money can’t buy.

Closing Thoughts

KTM's journey in India, from a niche European brand to the country’s leading premium sports bike manufacturer, is a testament to strategic partnerships, market understanding, and innovation. Bajaj’s investment in KTM proved to be a game-changer, benefiting both companies immensely. While the brand may carry a certain stereotype today, its impact on the Indian biking culture remains undeniable.

For me, KTM was more than just a bike—it was a defining part of my journey. And for thousands of enthusiasts across India, it remains the gateway to high-performance motorcycling.

Sources

Bajaj Auto Limited annual reports for the FY 2007-08 to FY 2023-24