To meet the growing demand for KTM and Husqvarna motorcycles in China and other Southeast Asian countries, the brands’ motorcycle facility in Laguna has opened its new engine assembly line.
“The motorcycle market in ASEAN and China have had a very strong demand for the KTM and Husqvarna brands. The partnership with Ayala and KTM has been a fruitful one, not only for the business—but more so for the livelihood and talent of the Filipino to shine in the ASEAN and China stage,” said Arthur Tan, group president and CEO of AC Industrials and KTM Asia Motorcycle Manufacturing (KAMMI).
“Our expansion to build an engine facility allows us to have a more efficient production flow as we reach more volumes. The model mix of KTM and Husqvarna continues to grow and we are looking at ‘economies of scale’ in order for us to meet the demand.”
At the start of its operations, the KAMMI plant assembled only four KTM models. Now, it manufactures 13 KTM bikes and three Husqvarna nameplates.
“The KTM engines were semi-assembled units [here in the Philippines],” explained KTM Philippines president Dino Santos. “They come from different areas and origins. It’s a very complex integration of sorts. This year, we intend to streamline the process and have one consolidated push.”
From 2017 to 2020, the KAMMI facility produced some 29,000 KTM motorbikes, with 7,000 units manufactured last year. With the dedicated assembly line for KTM and Husqvarna engines, the group is expecting to produce 12,000 units by the end of this year. And if our insider’s information is accurate, 70% of KAMMI’s total production is exported to other countries, including China.
NOTE: This article first appeared on TopBikes.ph. Minor edits have been made.
