According to its latest investor presentation, Pierer Mobility (Pierer) is planning to build a range of 750cc KTM motorcycle models. The new models will be made by a Joint Venture between the Austrian manufacturer and Chinese manufacturer CFMoto. Presently, the companies are completing a new manufacturing plant in Hangzhou, southeastern China.
New KTM 750cc models
The plant is will only manufacture twin cylinder models. For KTM, that includes its new upcoming 750cc lineup consisting of a 750 Duke, 750 Adventure, and a 750 Supermoto T. Further, the factory will build bikes for both the China domestic market and global markets.
Interestingly, KTM’s products will not be the first off the joint venture manufacturing plant’s assembly line. That honor will go to a CFMoto product to be called the CFMoto-MT800. Deliveries of CFMoto’s new machine may begin in the first quarter of 2021.
750cc Growth potential
The joint venture sees a significant opportunity for “high-end” motorcycles and cites that that market is growing 20 percent per annum. Currently, plans call for the factory to produce approximately 50,000 bikes per year. But looking forward, the joint venture thinks that capacity could expand to around 100,000 motorcycles per year.
And apparently, the joint venture is going very well. Pierer’s investor presentation states:
Massive increase of cooperation level: Production of 750 DUKE, 750 ADVENTURE, 750 SUPERMOTO T for China domestic plus global markets in the JV factory
The bolded font comes directly from the investor presentation. This seems to scream that both entities are happy with their accomplishments to date.
Previously, Pierer said that the 790 Duke and 790 Adventure would be produced at the new Hangzhou factory. Now they say the factory will make KTM’s 750 models and CFMoto’s 800 model. That begs a question. Can the new factory also produce KTM’s 790 Adventure and Duke (if they are continued), and KTM’s rumored 890 Adventure and 890 Duke, as well as the upcoming Norden 901?
Pierer says that it built 90,331 units during the first half of 2020 during the COVID pandemic. And their forecast for 2022 says that they want to produce approximately 400,000 units by the end of the year. Those two figures represent very significant and rapid growth. How they will make that many units remain to be seen.
Other production facilities
Ultimately, Pierer has several partners, including another partnership with Indian manufacturer Bajaj. Perhaps they are counting on Bajaj to help out with production as well. The investor presentation says that there is no capacity restriction in the India Chakan factory, although that factory presently only builds single-cylinder models.
It will be interesting to see how Pierer ultimately carries out the production of its twin-cylinder machines. Will all of it stay in China, or could some units move elsewhere to other Peirer facilities?
If you’d like to see the Pierer Mobility presentation in its entirety, you can find the information on its website.
All image credit: Pierer Mobility