KTM targets Lotus with 250bhp roadster
7 November 2006

Watch out, Lotus - Austrian motorcycle brand KTM is branching into car production with a potent Elise rival.

The as-yet-unnamed roadster is being developed in conjunction with Italian racing specialist Dallara. It will use predominantly Volkswagen drivetrain, including a tuned version of the TFSI engine producing 250bhp. Austrian firm Kiska, which has previously worked with KTM on its motorcycles, is designing the two-seater.

KTM plans to launch the car at next year's Geneva motor show, and produce up to 1000 examples per year. Some rumours have suggested that the firm's deal with Volkswagen might extend to a servicing and warranty arrangement at the German giant's dealership network. In any case, with a price tag of €35,000 (£23,500), KTM's first offering could make the £23,995 base Elise look a tad expensive.

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