Bajaj Auto Set to Gain Control of KTM

Bajaj Auto will become the majority owner of Austrian motorcycle maker KTM, ending a long-term partnership as a minority investor, marking a strategic change in its cooperation. The Indian car manufacturer has made plans to take charge through its fully-owned Dutch unit, Bajaj Auto International Holdings BV (BAIHBV), which has secured a massive €800 million (approx. ₹7,765 crore) debt financing facility. The action is aimed at saving KTM from its existing financial troubles and is awaiting regulatory approvals.
This move represents a critical shift in the partnership between the two firms. Bajaj Auto, which has co-developed and manufactured motorcycles for both the Indian and global markets with KTM over the years, is now set to take on a leadership position in the future of the brand.
The €800 million fund, coordinated by BAIHBV, will take direct care of KTM’s liquidity shortfall. It will cover payment of approved creditor claims under KTM’s Austrian court-approved restructuring program and supply working capital to continue operations. Out of the total, €200 million has already been provided, with the remaining €600 million to follow shortly.
KTM AG, along with subsidiaries KTM Components GmbH and KTM F&E GmbH, embarked on a self-initiated restructuring procedure in November 2024 due to mounting debt and operational issues that had started causing disruption in daily operations. The financial assistance of Bajaj Auto is projected to stabilize the company and lead it back to recovery.
BAIHBV also intends to use the “restructuring privilege” under the Austrian Takeover Act, which provides certain legal benefits when investing in troubled companies. It previously owned a 49.9% stake in Pierer Bajaj AG (PBAG), a joint venture with Austrian businessman Stefan Pierer’s Pierer Industrie AG. PBAG has effective control of almost 75% of Pierer Mobility AG (PMAG), KTM’s parent. This structure of ownership gave Bajaj an indirect 37.5% stake in KTM. The new plan seeks to take direct majority control.
KTM AG is known worldwide for its performance motorcycles through the brands of KTM, Husqvarna, and GASGAS. As soon as the takeover gets regulatory approvals, Bajaj Auto plans to reorganize KTM’s governance, such as reconstituting the board and rolling out a strong revival plan. The thrust will be towards enhancing competitiveness, financial health, and strategic alliances to create long-term value.
Bajaj Auto sees this acquisition as a stepping stone to drive KTM’s growth worldwide, build brand equity, and solidify its position as a technology leader in the high-performance motorcycle space. The action is an extension of Bajaj’s overall aim to grow its presence in the worldwide two-wheeler market.