KTM-CFMOTO JV Plant in China Opens Their New Future

Two Top Motor Manufacturers in the World Have Worked Together


Hangzhou, China -- (ReleaseWire) -- 06/16/2020 --KTM AG, an Austrian motorcycle manufacturer, has reportedly joined forces with a Chinese Sportmotorcycle brand, CFMOTO, to introduce the joint venture CFMOTO-LTMR2R.

Both have made strides in the past two years designing the production center and new models. It is expected that the construction shall be done by June this year.

The coming completion shows an alluring prospect that KTM will shift production of a number of its middleweight models away from its native Austria and out to China, partly shifting its focus to selling in Asia while freeing up capacity at home for other more prestige models. And as for CFMOTO, the construction will transform it into the first Chinese manufacturer to produce large-capacity multi-cylinder motorcycles.

The collaboration between the two companies has a long history. In 2011, the two companies first entered into a joint venture, with CFMOTO importing and supplying KTM motorcycles across China. Partnership upgraded in 2014, when CFMOTO began assembling Indian-made 200 and 390 Dukes for sale exclusively in China.

Three years ago, in 2017, the collaboration became closer after the signing of an agreement to establish a joint venture, later known as CFMOTO-KTMR2R, and a ground-breaking ceremony was held for a new manufacturing plant in Hangzhou the next year.

The remarkable new factory that will be completed soon is designed to be nearly 25,000 square feet large with a potential annual capacity of 20.000 motorcycles.

When the plant is brought to steam, Hangzhou will turn into KTM's third global manufacturing site alongside Mattighofen and Pune.

The factory is where CFMOTO 990/1090 V-twin models will be built alongside KTM's all-new parallel-twin range powered by the 799cc RCBc motor, followed by all 790 models.

The cooperation between the two companies becomes more intensive due to KTM's trust in CFMOTO's manufacture. "We have been very positively impressed by CFMOTO's quality of manufacture, attention to detail, and engineering capability." Quoting Florian Burguet, Managing Director of KTM Sportmotorcycle AG, who spoke highly of CFMOTO. "Accordingly, from 2020/21 onwards, we have decided that Hangzhou will host the entire production of KTM's mid-class models for the global market, with the expectations that our CFMOTO partners will produce up to 50,000 KTM motorcycles per year there."

The oncoming construction of the new factory will lead both companies to develop a new step in various aspects. For KTM, the models with lower prices that will be manufactured in China onwards will make the company more competitive in the category of global 501-900cc Roadster, especially in the Asian market. Also, the following production transfer will enable KTM to make future expansion with its other brands in Europe. And as for CFMOTO, the brave Chinese venture is going to jump into the uncharted waters in manufacturing the most powerful models of motorcycle that have never been manufactured in China.

Customers may also benefit from the series of mutual progress made by two companies, for they will be able to purchase the No.1 mid-sized products from Europe with more ideal prices and high quality as they used to keep.