Bajaj Auto and KTM AG have had a strategic partnership since 2007, which involves Bajaj holding a significant stake in KTM and collaborating on various aspects, including the development and production of motorcycles. While it is true that some Bajaj and KTM Duke models share engines, there are several factors that contribute to the price difference between the two brands:
Brand Positioning: Bajaj and KTM have different brand positioning and target markets. KTM is known as a premium brand that focuses on performance-oriented motorcycles, while Bajaj has a wider product range and caters to a broader market segment, including entry-level and commuter motorcycles. The premium positioning of KTM allows for higher pricing compared to Bajaj.
Quality and Features: KTM motorcycles often offer higher build quality, advanced features, and more sophisticated components compared to equivalent Bajaj models. This can include better suspension systems, braking systems, electronics, and overall fit and finish. The higher quality and advanced features contribute to the higher price tag.
Design and Engineering: KTM bikes typically feature more aggressive and sporty designs, which require additional engineering and development efforts. The design elements, performance characteristics, and overall aesthetics of KTM motorcycles contribute to their higher price compared to Bajaj models.
Component Sourcing: KTM motorcycles may use components and parts from different suppliers, including premium brands, which can increase the overall manufacturing cost. Bajaj, on the other hand, may utilize more cost-effective components from its extensive supply chain to keep the pricing competitive for its target market.
Manufacturing and Assembly: While Bajaj and KTM collaborate on the development of engines and technology, the manufacturing and assembly processes for KTM motorcycles often take place in Austria, where KTM is headquartered. The cost of production, including labor, overheads, and logistics, in Austria is generally higher compared to India, where Bajaj motorcycles are manufactured. This difference in manufacturing costs can contribute to the price disparity.
It's important to note that these factors are general considerations and may not apply to every specific Bajaj or KTM model. Prices can also vary based on local market conditions, taxes, import duties, and other regional factors.