Key highlights
- Bajaj Auto has announced plans to acquire a majority stake in KTM, injecting €800 million to rescue the Austrian motorcycle brand.
- The investment will help KTM resolve its financial troubles, restart operations, and strengthen its global presence.
- Bajaj aims to restructure KTM’s governance, improve production efficiency, and explore new partnerships for long-term growth.
Bajaj Auto is stepping in to save KTM from financial distress, marking a major shift in its long-standing partnership with the Austrian motorcycle brand. The Indian manufacturer, through its Netherlands-based subsidiary Bajaj Auto International Holdings BV (BAIHBV), has committed €800 million to revive KTM’s operations and restructure its debt.
KTM’s financial struggles and restructuring plan
KTM has been facing severe liquidity challenges, leading to a court-supervised restructuring process in Austria since November 2024. The company struggled to meet debt obligations, forcing creditors to approve a one-time payment of 30% of their claims by May 23, 2025 to avoid insolvency.
Bajaj’s €800 million financial package includes:
- €450 million secured loan to KTM AG.
- €150 million in convertible bonds, issued by Pierer Bajaj AG (PBAG).
- €200 million already infused as shareholder debt in FY24 and early 2025.
These funds will help KTM pay creditors, restart manufacturing, and stabilize its supply chain.
Bajaj’s move from minority investor to majority stakeholder
Until now, Bajaj held an indirect 37.5% stake in KTM’s parent company, Pierer Mobility AG (PMAG), through its joint venture Pierer Bajaj AG (PBAG). With this latest investment, Bajaj is acquiring full control of PBAG, making it the majority owner of KTM.
This shift allows Bajaj to take an active role in KTM’s management, ensuring financial stability and long-term growth.
Strategic plans for KTM’s revival
Bajaj Auto has outlined several key steps to rebuild KTM:
- Reconstituting KTM’s board to improve governance.
- Restarting production and supply chain operations.
- Strengthening joint development programs between India and Austria.
- Exploring new partnerships to enhance KTM’s competitiveness.
Bajaj’s involvement is expected to boost KTM’s global market presence, especially in the premium and sports motorcycle segments.
Industry impact and future prospects
This takeover highlights India’s growing influence in the global motorcycle industry. Bajaj’s investment ensures KTM avoids insolvency, allowing the brand to continue innovating and expanding.
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