Shortly after the announcement that the Ayala Corporation will be distributing and manufacturing products from Austrian motorcycle brand, KTM-Sportmotorcycle AG (Kronreif & Trunkenpolz Mattighofen), the group unveiled more concrete plants at press conference last Monday.
KTM is known for producing an extensive line of off-road racing motorcylces and quads.
The motorcycles will be distributed by Adventure Cycle Philippines, Inc. (ACP), a newly formed member of the Ayala Automotive Group. It take over local marketing and operations this year and begin manufacturing in 2017 through another Ayala subsidiary. ACP took the opportunity to introduce its management team, led by Dino Santos, ACP chief executive officer; Pio Paolo S. Gindap, logistics manager; Manuel S. Sandejas, BGC dealership general manager; and Ana Lourdes V. Lumban, marketing head.
Present for the momentous occasion were Julian Legazpi, KTM Southeast Asia managing director; and Lisa Koscak, Austrian Embassy commercial counsel.
Ayala Automotive Group president and CEO, JP Orbeta cited the enthusiasm for adventure riding of brothers Augusto and Fernando Zobel de Ayala, chairman and CEO, and president and COO of Ayala Corporation for the quick negotiations for the KTM distributorship.
Initial talks over the Ayala-KTM partnership started in June 2015 with the agreement formalized five months later.
Orbeta outlined three key steps in the new company’s strategy:
1) immediately set up distributorship and talk with dealerships that are already operating.
2) continue the distribution and supply chain.
3) start the manufacturing operations, both for domestic and export markets.
ACP plans to offer the entire motorcycle lineup in 2017, from the top-selling Duke 200 to the top of the line 1290 Super Adventure. Ayala did not elaborate on prices but maintained that the current models and prices already offered by the seven dealerships will stay the same. ACP’s first owned and operated dealership is planned to begin operations in Bonifacio Global City in two months. 30 new dealerships are planned and will be exclusive KTM showrooms, with boutiques for KTM branded equipment and apparel. With the current network, it plans to sell 2,000 more units by the end of 2016.
For 2017, Ayala, through its subsidiary microchip manufacturer, Integrated Micro-Electronics, Inc., will manage local manufacture of the Duke 200, Duke 390, RC200 and RC 390 models in a facility in Biñan, Laguna. The initial production run is pegged at 6,000 units, eventually growing to meet the plant’s full capacity of 20,000 units annually. The facility is hoped to serve as a central hub for the region and hopes to export to neighboring ASEAN markets as well as China. Prices for the locally assembled models are hoped to be lowered by the time manufacture goes into full swing.
As for current KTM owners with bikes purchased from the former distributor, ACP said it will “extend support” and honor its "global warranty for KTM bikes".
Ayala Automotive, also the distributor of Volkswagen vehicles in the Philippines, hopes the “Made in the Philippines” badge will lead to the brand’s success in the local market as VW had experienced in the country decades ago under DMG.
“This is to show that we actually have a wild side,” humored Orbeta. Ayala is now “Ready to Race,” said Santos.