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KTM launches first CKD factory in Kedah

31. January 2013

KTM, Europe’s second largest manufacturer of motorcycles, and Motonation Sdn Bhd are now assembling the KTM 200 Duke and KTM 690 Duke motorcycles at the KTM assembly plant in Kedah.

The plant is the first of KTM’s CKD factories outside Austria and has been set up to serve the South East Asian market. With a Dyno Test Lab and ABS module equipment, it is the first of its kind in the world.

Motonation has invested RM 30 Million in the state of the art facility and hopes to create about 500 jobs within its first five years of operation. Production is planned to be increased by 20 – 30 % to serve the market demand domestically.

The opening of the KTM CKD plant on 18th January 2013 was officiated by YB Dato’ Mukhriz Mahathir, Deputy Minister of International Trade & Industry. Also present were Datuk Redza Rafiq, Chief Executive of Northern Corridor Initiative Area, and Selvaraj Narayana, Managing Director KTM South East Asia.

The assembly plant is designed to produce 10,000 units of motorcycles per year on just one shift. The current output is approx. 2,000 units per year of which 90 % is the KTM 200 Duke and the remainder the 690 Duke. Both models are locally assembled from 100 % imported parts.

Motonation strives to become a motorcycle hub in the regional market, as the 200cc to 800cc segment of motorcycles has experienced extraordinary growth, especially in Malaysia and Thailand. It plans to increase its factory size in future, deploy more advanced machinery, set up a new R & D facility and assemble other KTM models.

KTM has overtaken BMW Motorrad to become Europe’s NUMBER ONE motorcycle manufacturer. KTM sold 107,142 motorcycles through calendar year 2012 to record its personal best sales. KTM grew a respectable 32 percent in 2012 and increased their market share by 7.5 percent.

In Malaysia, KTM is the top European make by unit sales in 2012 with over 1,800 sold.