New Delhi: Bajaj Auto Limited (BAL) is continuously driving to attain more and more success in the auto industry.

It’s another achievement by Bajaj Auto, which has bought 14.5 percent stake in Euro-KTM Power Sports AG, the second biggest European sports motorcycle maker, for about Rs 300-350 crore.

The recent investment has been made through BAL’s wholly-owned subsidiary Bajaj Auto International Holdings BV, Netherlands. Baja Auto will also be looking for another 5-10 percent share in the company (Euro-KTM Power Sports AG).

The company sources also told that BAL may also get a place on the KTM panel

The two companies (BAL & KTM) will jointly develop street bikes for both Indian as well as abroad markets. This will harmonize BAL’s attempts to shape a pact with one more European motorcycle brand called ‘Triumph’.

The company sources said that BAL is making discussions with Triumph, and if they go through, the focus would be more on cruisers and other higher displacement on-road products.

In contrast, KTM creates mostly off-road sports bikes. Its jointly-made street bikes with Bajaj will have smaller 125 and 250 cc engines.

Presently KTM promoters hold 50.1% shares of the company.

When asked if Bajaj would step-up its stake in KTM to around 20-25%, Stefan Pierer, KTM chief executive said, “Our company is listed on the Vienna stock exchange and Bajaj’s current stake comes from the free float shares. If there’s something free on the market they could do it and end up increasing their participation. We see this as a long-term partnership and we would be very positive about it.”

The affiliation will mutually build up a high-performance, water-cooled engine platform for 125 and 250 cc bikes. "The engine platform will spawn several models. KTM will do KTM models and Bajaj will make Bajaj motorcycles.” Mr. Pierer added.

For this fresh range of street bikes-Bajaj on India and the South Asian and South East Asian markets and KTM on Europe, Mr. Pierer said that the two companies are concentrating on their core markets.

The spread will expand in the second phase, he said.

“We have a good presence in north America and we can figure out which models will work there. Also we have a footprint in Japan but not in the rest of Asia so the alliance can look at South East Asian markets like Indonesia, Philippines, China, Vietnam etc,” he also said

“The alliance will not only enable Bajaj to take over the distribution of KTM products in India and South East Asia, it will also enable the Indian two wheeler major to access the European market through KTM. We are currently looking at how we can market and sell Bajaj products in European markets,” Mr. Pierer said.