KTM motorcycle dealerships to grow in 2019

MANILA, Philippines — The official distributor of KTM motorcycles in the Philippines expects its sales to grow by 48 percent this year as it opens new dealerships in more parts of the country. 

Andre Angelo Santos, president and chief operating officer of Ayala unit Adventure Cycle Philippines Inc. said the company sees sales reaching 4,000 units this year from 2,700 units a year ago. 

“This year, we are looking at around 4,000 units [to be sold] because there is going to be an increase in our dealership network,” he said. 

The company aims to have 42 dealerships by yearend from around 27 last year. 

Santos said the increase in dealerships would enable the company to sell more KTM motorcycles as it reaches areas it previously couldn’t serve. 

“The new dealerships are mostly outside of Metro Manila, also in the Visayas and Mindanao, but we would like to keep a ratio of 40 percent Metro Manila, 30 percent in the Visayas and 30 percent in Mindanao,” he said.

In addition, he said the production facility located in Sta.Rosa in Laguna is seen to help the company achieve higher sales as it is able to offer the market competitive products in terms of quality and price. 

The company is part of the Department of Trade and Industry’s Motor Vehicle Development Program which allows companies to bring in parts used for assembly operations at a very competitive level. 

Of the 17 KTM motorcycle models being sold in the country, four are produced at the facility in Laguna and are in the 400 cc displacement range. 

Santos said bulk or 60 percent of sales this year would be accounted for by exports, while the 40 percent balance would come from the domestic market. 

“In the beginning, it was our dream for the Filipinos to ride KTMs. And therefore, we want to build them… Now that we’re building them, we want the world to be able to ride Filipino-assembled motorcycles. And so, that’s basically the main business model for us because we feel the Filipino can contribute to the world industry in motorcycles,” he said. 

The company currently ships assembled motorcycles to China, Thailand and Vietnam. 

Santos said the company is banking on the Duke 200, its most affordable unit priced at P150,000, as the model that would drive sales this year. 

KTM is under AC Industrials, a wholly owned subsidiary of Ayala Corp. 

Apart from KTM, other brands under Ayala’s automotive portfolio are Honda, Isuzu, Volkswagen and Maxus.