KTM decided to move the production line to China and actively cooperated with Chunfeng

Mondo Military Updated on 2024-01-30

KTM's decision to move the production line to China was clearly based on positive cooperation considerations with CFMOTO. Behind this strategic decision, it is not only a simple cost-benefit calculation, but also a long-term plan for the global market layout.

First of all, KTM's cooperation with CFMOTO has undoubtedly opened a door to the Chinese market for KTM. As the world's largest motorcycle market, China's huge consumption potential and growing demand for mid-displacement models are undoubtedly an attractive target for KTM. The transfer of production of the 790 Duke and 790 Adventure models in the mid-displacement model can be said to be the beginning of KTM's deep cultivation in the Chinese market.

Second, the decision to move some production activities out of Austria is a seemingly retrograde decision, but it is actually a deliberate global strategy of KTM. Although Austria has world-class production technology and equipment, its cost advantages are not significant compared to China's low-cost production environment. However, Austria is the headquarters of KTM, and its brand image and history are irreplaceable. The transfer of part of the production line can be seen as KTM's active exploration of new markets and production environments while maintaining its brand image and historical accumulation.

Finally, the transfer of part of the production line to China is actually part of KTM's global market layout. In the Far East, especially in China, the growth rate is still faster than in any other market. Taking advantage of China's low-cost production environment and Austria's technological advantages, KTM can not only reduce production costs and improve production efficiency, but also better meet the needs of the Far East market, and further consolidate and expand its influence in the Far East market.

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