|
|
|
KTM's Parent Company Isn't Doing Hot, Shifting More Production to China and India
- Thread starter TK4
- Start date
PacoT
Well-known member
Yeah. In the case of Triumph the Trident and Tiger 660 are made in Thailand (I would think the daytona 660 as well, but I'm not sure.)
Not very surprising. You can see it on dealership floors that recreational vehicles are moving slowly. At GP Bikes last week it seemed the place was stogged with new bike inventory, though still quite a few "SOLD" signs hanging on stuff.
The e-assist mountain bikes from Husqvarna & Gas Gas were heavily discounted, to the point that I'm think of buying one. There were R1300GS's still available too which surprised me as well publicized/hyped new models usually sell out early in the season.
For KTM I think part of the issue is the KTM, Gas Gas & Husky off road bikes are essentially the same model in different colors. All that does is increase production costs and leaves them competing with themselves for the same customer.
I also think that the cost of a new bike has risen into the astronomical territory, at least it has for me. I've been a motorcycle consumer for 40 years and am firmly in my "pockets full and debt free" stage of life but there is ZERO chance that I'm going to spend near $30K or more on a new street bike or $15K on a new enduro. I recognize that all the tech they're loading in has a cost and represents a certain value (added), but it's not worth it to me.
Doing more production in China or India may lower costs some but not likely prices by much and then you have the buyer perception barriers created by such a move. Rock...meet hard place.
It's also possible that production, either industry wide or company specific has exceeded demand and the market isn't growing fast enough or maybe has peaked and won't expand very much in the near term.
The e-assist mountain bikes from Husqvarna & Gas Gas were heavily discounted, to the point that I'm think of buying one. There were R1300GS's still available too which surprised me as well publicized/hyped new models usually sell out early in the season.
For KTM I think part of the issue is the KTM, Gas Gas & Husky off road bikes are essentially the same model in different colors. All that does is increase production costs and leaves them competing with themselves for the same customer.
I also think that the cost of a new bike has risen into the astronomical territory, at least it has for me. I've been a motorcycle consumer for 40 years and am firmly in my "pockets full and debt free" stage of life but there is ZERO chance that I'm going to spend near $30K or more on a new street bike or $15K on a new enduro. I recognize that all the tech they're loading in has a cost and represents a certain value (added), but it's not worth it to me.
Doing more production in China or India may lower costs some but not likely prices by much and then you have the buyer perception barriers created by such a move. Rock...meet hard place.
It's also possible that production, either industry wide or company specific has exceeded demand and the market isn't growing fast enough or maybe has peaked and won't expand very much in the near term.
Chris-CJ
Well-known member
KTM is considered an upmarket bike in the land of the most populous nation, never mind they use Bybre brakes and not Brembos.
Import restrictions are onerous and it makes sense to establish a plant there if KTM plan on taking on the local market.
Is the local plant a tie-up with a local mfr, a la BMW/TVS?
Import restrictions are onerous and it makes sense to establish a plant there if KTM plan on taking on the local market.
Is the local plant a tie-up with a local mfr, a la BMW/TVS?
I believe they're part owned by Baja, or something.
... but ByBre ARE Brembos... the name is short for "By Brembo", as in "made by brembo"
Made in China... Brembo has had a chinese plant for a LONG time. They're just as good as normal OEM Brembo stuff... which ain't that great anyway. Harley branded brakes are Brembo too... and not that great either (Harley's fault, not Brembo's)
OH... and I was joking when I said KTM will drop their price in India, they'll just pocket the difference
Chris-CJ
Well-known member
True dat, ByBre are Brembos, with the distinction that they are "small bike" brakes.
(Sorry, don't mean to derail OP's post)
TK4
Well-known member
Brembo owns -
- AP — Car brakes
- AP Racing — Racing motorcycle and car clutches and brakes
- Breco — Aftermarket discs and drums
- Brembo — High end brakes (flagship)
- ByBre — Small to midsize scooter and motorcycle brakes in Brazil, Russia, India, China, and South East Asia
- Marchesini — Wheels
- Villar — Aftermarket discs
- J.Juan — Motorcycle brakes - acquired 29/04/2021
- SBS Friction — OEM and aftermarket brake pads, brake discs and clutch kits for motorcycles, scooter, racing and UTVs/SSVs/ATVs
"With the growth in sales figures over the last ten years, the number of employees at the motorbike subsidiary KTM AG has more than doubled,"
I'm curious how many bike manufacturers can claim this though. I'm sure everyone is cutting back but I'd be willing to wager KTM was one of, or the biggest employment grower of the bunch and I think that matters.
I'm curious how many bike manufacturers can claim this though. I'm sure everyone is cutting back but I'd be willing to wager KTM was one of, or the biggest employment grower of the bunch and I think that matters.
bigpoppa
Well-known member
Yeah everything is relative, if they sell 1000000 bikes a year and have an off year or 2 with sales down 10%, not exactly a cause for concern.
I’m doing all I can to boost Ktm sales anyway
It's also a good way to learn how to build better bikes for everyone in a big hurry. And to sort out top designers and engineers in a big hurry. Modern performance-oriented ABS and traction control, "controlled chassis flex" and chassis geometry, etc wouldn't have been taken to their current levels without the motivations from roadracing.
The key words being "wouldn't have". I think we're in a different stage of vehicle development now, and on-track advances may not bring enough to on road products to justify the expense, particularly for KTM.
Plus, KTM doesn't really have a recent history of factory-led high level road racing (although I think they've had a 250cc team or equivalent) so they're embarking on a steep and expensive learning curve against manufacturers who have history and experience to burn.
TK4
Well-known member
They pretty much rule Moto3, covering the grids through their various tank badges. The only other player is Honda.
Priller
Well-known member
Also, don't confuse a small audience for MotoGP here with a small audience globally. MotoGP is huge in Europe (especially the south), as well as big chunks of Asia, both of which buy motorcycles at a far, far greater rate than North America. It may appear to be a vanity project if you're selling monster ADV bikes to elderly Americans, but it definitely isn't when selling small displacement sporty bikes to kids in Indonesia, Thailand or India...
It's all about profit.
Market Summary > PIERER Mobility AG
29.00 CHF-45.80 (-61.23%)past year
Jul 25, 1:10 p.m. GMT+2 • Disclaimer
At -61.23% they aren't going to attract investors who rely on the income. If the carrot at the end of the stick is juicy enough looking some investors may stay and some new ones attracted.
However they are back to early Covid values. That's a deep ditch.
One negative is the loss of the Made in Austria label. Does cachet mean as much to KTM as Harley's all American blood guts and roar does for them?
I would be concerned about investing in toys that have carrying costs, especially in these confused times.
In other markets, Asia and India, small bikes are beasts of burden and I wonder if non western countries realize the gold our streets are paved with has largely been replaced with brass plate.
Motorcycle sales are susceptible to various diseases; insurance, interest rates, legalities and competition from housing. Do you want that new bike or $30K less on your mortgage?
The competition for the consumer's dollar, in all markets, is cutthroat intense. What can any company do that their competition can't copy?
Is it a race to the bottom with no hope of long term stability?
|
|
|
|
|