KTM Philippines: Motorcycles for the Asean Market

KTM Philippines ‘ state-of-the-art motorcycle manufacturing facility located at Laguna Technopark in Sta. Rosa, Laguna was recently inaugurated. KTM Asia Motorcycle Manufacturing, Inc. (KAMMI) is a joint venture partnership between Adventure Cycle Philippines, Inc., owned by AC Industrial Technology Holdings, Inc. (AC Industrials), a member of Ayala Group of Companies, and Austrian motorcycle giant KTM AG (Kronreif & Trunkenpolz  Mattighofen AG). It has set its goal to build motorcycles for the Filipinos and the Asean market.

KTM Philippines Manufacturing Plant

Inside the vast Laguna Technopark which has transformed parts of Sta. Rosa and Binan to a  highly progressive urban center generating employment for hundreds of thousands workers and export revenues, lies the new KTM Philippines motorcycle manufacturing plant. KTM Asia has chosen the Philippines as its Southeast Asian hub with the intent of boosting export capacity to address the rising demand for motorcycles in the region. KTM is a global brand and its presence in the country is expected to enliven the competition with established brands specifically from Japan and China.

Art Tan, AC Industrials CEO, disclosed that the Ayala group’s foray into motorcycle assembly is in line with the company’s push in bolstering its growing manufacturing portfolio. “We are further expanding our capabilities as part of our thrust of fostering synergies with Ayala companies,” Tan said. “Combining the competencies of our manufacturing and distribution arms allows us to scale our presence in this space, taking advantage of evolving  movements in technology,automation, and industrial technology.”

Meanwhile, Dino Santos, KAMMI’s President and COO, extolled the impact the plant’s opening has to Filipinos and the Philippine economy. “This investment is part of our belief that manufacturing should be a key driver of our country’s inclusive growth going forward,” he explained. “It provides jobs, supply chain opportunities, and helps put the country in the map as a center for innovation and industrialization.

The KTM Philippines plant – which assembles four (4) KTM models such as the KTM 200 DUKE, KTM 390 DUKE, KTM RC 200 and KTM RC 390 – will have an initial production run of 6,000 motorcycles, with the goal of eventually expanding to 10,000 units annually. Apart from the domestic market, KAMMI plans to export to neighboring ASEAN markets as well as China, where some 60 million motorcycles are sold per year.

KAMMI hopes to ramp up their network to 32 dealers nationwide this year, each one providing sales and aftersales support.

With this development, AC Industrials–which consolidates the Ayala Groups automotive and manufacturing segments — seeks to play a bigger role in manufacturing and contribute to the country’s rise as a Southeast Asian (ASEAN) industrial hub. Furthermore, this bold move is deemed a milestone not only in the Ayala Group’s history, but for the country as well.

KTM Event

KTM Philippines chose to introduce itself to the public and media through an event held at Nuvali Evoliving which provided the opportunity for the people behind it to send a clear message as to the company’s reason for being. All guests were invited to join the plant visit which is located very near the event venue.

My Say

Every time I come out of our village gates, I notice a plant just across it and have been wondering what product they were producing. Having the chance to visit the plant inside and seeing how clean and maintained it is made me heave a sigh of relief since we live very near it. KTM Philippines is indeed a welcome addition to the motorcycle industry seeing how many residents in the area actually ride one.

Get READY TO RACE safely.

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