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It hasn't even been launched yet, but the KTM X-Bow has proved such a success that the Austrian manufacturer is building a new factory to cope with demand.

Famous for building dirt-bikes, KTM's first foray into car manufacturing has been far more successful than predicted.

Originally the company forecast a maximum production of 500 units a year, but so many deposits have been placed that a new plant near Graz in Austria is being built so that 1000 cars a year can be built.

Confirmation that Audi will provide the 2.0 TFSI engines to meet the increased production is another key reason for KTM giving the new 'four-wheeled centre of excellence' the go-ahead.

A pan-European network of service partners will also be put in place, details of which will be revealed later.

The X-Bow is due to arrive early in 2008, and although claimed stats have the turbocharged Austrian car lagging a second behind the Ariel Atom Supercharged's 2.9 second 0-60mph time, we reckon the twin test promises to be a close call.

Click below for prices and more information on the X-Bow.

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