KTM have signed a deal with Chinese manufacturer CFMOTO to set up a joint venture business. The deal was signed to improve KTM's access to the Chinese market, the world's largest motorcycle market, with an eye on manufacturing bikes using KTM technology. Whilst CFMOTO will benefit from KTM's experience, design and engines.

The deal was signed last week but awaits approval from Chinese authorities.

KTM first partnered with CFMOTO several years ago, with the Chinese manufacturer being responsible for the distribution and assembly of KTMs in the region. KTM will hold 49% equity in the new business, CFMOTO will hold 51% and the venture will be known as CFMOTO-KTMR2R.

The alliance will see the commissioning of a new facility, across the road from the existing CFMOTO factory, which will produce bikes both for China and developed countries.

The annual numbers for production are expected to be 50,000 units over the next 2 of years, which may not sound like a lot but this is still significant from the viewpoint of the Chinese customer’s preference for the KTM brand.

From 2020, it also means that CFMOTO will manufacture KTM’s entire future range of middleweight models powered by the new 799cc LC8c parallel-twin engine - which made its global debut in the recently launched 790 Duke, as part of KTM's new five-year plan to manufacture 400,000 KTM and Husqvarna motorcycles annually by 2022. 

This will render CFMOTO motorcycles competitive price-wise with their Japanese rivals, while offering extra performance – partly via a superior power to weight ratio - as well as a more sophisticated specification, with the most advanced electronics in the category included as standard.

You can read more, from Cycle News and Alan Cathcart here: https://www.cyclenews.com/2018/04/article/ktm-cfmoto-west-meets-east/.