Ayala set to export KTM motorcycles to China

Conglomerate Ayala Corp. expects to start exporting locally manufactured motorcycles to China next year, making it the first Philippine firm to do so, a ranking company official said.

John Philip S. Orbeta, head of the automotive dealership and distributorship businesses within AC Industrials, said they were on track to open a flagship store next week for the distribution of KTM motorcycle units through Adventure Cycle Philippines Inc.

But the  manufacturing operations of KTM AG, the Ayala group’s new motorcycle partnership under KTM Asia Motorcycle Manufacturing Inc., will begin by the second quarter of next year.

The retail and manufacturing operations of KTM are housed under AC Industrials.

According to Orbeta, the manufacturing plant will have an initial capacity of 10,000 units, of which 3,000 will be sold locally.

The balance will be exported and the company got its first order from China.

“Ayala expects to start exporting by next year… Once our exports to China get off the ground, the opportunity is there for us to export to the rest of the Asean at zero tariff as the bikes will be compliant with the requirement to have 40 percent local content,” Orbeta said.