KTM teams up with CFMOTO for China growth
CFMOTO has announced a new relationship with KTM that will see the two organizations work collaboratively to offer the local Chinese motorcycle market a range of KTM motorcycles under the trademark KTMR2R.
Under the terms of the collaboration, CFMOTO will be responsible for the distribution of KTM motorcycles in China and will assemble selected models from imported knockdown kits.
The joint announcement was made at the China International Motorcycle Trade Exhibition (CIMAMotor 2013) in Chongqing, where KTMR2R showcased a broad range of on- and off-road KTM motorcycles to the Chinese public.
Speaking at the announcement, KTM board member Hubert Trunkenpolz said the move into China was a logical next step as the organization executed its globalization strategy.
“The rapid development of the Chinese economy is giving rise to a new type of Chinese customer, one who demands product differentiation,” he said. “KTM has the product to fill this gap in the market and the perfect partner in CFMOTO to see the process through for the long-term.”
Trunkenpolz also noted success in other emerging markets as a driver for their entry into China.
“KTM is experiencing greater success in emerging markets than we ever thought was possible,” he continued. “Considering the current economic development of China and how the motorcycle market is maturing here, we feel that this move fits our globalization strategy right now.”
Also speaking at the announcement, CFMOTO President Mr. Lai commented on the similarities between CFMOTO and KTM.
“Both CFMOTO and KTM emphasize high-end performance motorcycles that form part of the riders lifestyle,” he said. “With this shared philosophy, CFMOTO and KTM will cooperate to promote the orange brand in China.”
Chinese motorcycle association chairman Mr. Li, a special guest at the announcement, said the collaboration between CFMOTO and KTM reflected the rapidly shifting local motorcycle market.
“The Chinese motorcycle market is going through a structural adjustment and the products on offer are being updated as a result. The rise of the motorcycle as a lifestyle is upon us, which highlights the need for companies such as CFMOTO and KTM,” he said. “Personally, I have a lot of confidence in this cooperation between CFMOTO and KTM, one is an internationally famous brand, and the other is a local firm that insists on a differentiated development strategy.
“I believe this cooperation will be a breath of fresh air in the Chinese motorcycle market and provide Chinese customers a higher quality product and service,” concluded Mr. Li.
In answer to many of the media’s questions, KTM COO Harald Plöckinger said, “After this Chongqing show, we will immediately open our first dealers in Shanghai and Beijing, and then going into 2014 we will continuously be expanding the dealer network in China. In order to offer a competitive price to the customer in China, CFMOTO will import the 200 & 300 DUKE on a CKD [completely knocked down] basis.”
The full KTMR2R product range is expected to arrive in dealerships in China in early 2014.