Bajaj Auto on Thursday said that it plans to take majority control of Austrian motorcycle manufacturer KTM, marking a significant shift from its current minority investor status. This move will be facilitated through its wholly-owned Dutch subsidiary, Bajaj Auto International Holdings BV (BAIHBV), which has secured a debt financing package worth €800 million (approximately Rs 7,765 crore). The proposed acquisition is subject to regulatory approvals and is intended to support KTM’s recovery from severe financial distress.
With this transaction, Bajaj Auto is positioning itself to become a majority stakeholder in KTM, stepping up from a dormant investor to a key decision-maker in the company’s future. It has had a long-standing partnership with KTM, jointly developing and manufacturing motorcycles in India for both domestic sales and exports to over 80 countries. Bajaj Auto said that this collaborative model will not only continue but be further strengthened as it assumes a leadership role.
The €800 million funding package arranged by BAIHBV is designed to address KTM’s liquidity crisis. It will be used to settle approved creditor claims under KTM’s court-sanctioned restructuring plan in Austria and provide vital working capital to restart operations. So far, €200 million has already been infused into the company, with the remaining €600 million scheduled to follow imminently.
KTM AG and its subsidiaries, KTM Components GmbH and KTM F&E GmbH, initiated a self-administrative restructuring process in November 2024, following escalating debt issues and operational challenges. The company’s inability to meet its financial obligations had begun to impair day-to-day functions, prompting the need for urgent intervention. Bajaj Auto’s financial backing now offers a lifeline, helping to stabilise operations and chart a path toward long-term recovery.
In connection with the takeover, BAIHBV intends to invoke the restructuring privilege under the Austrian Takeover Act, which provides certain legal benefits when investing in distressed companies. Before this move, Bajaj Auto held a 49.9% stake in Pierer Bajaj AG (PBAG), a joint venture with Austrian entrepreneur Stefan Pierer’s Pierer Industrie AG. PBAG, in turn, owns nearly 75% of Pierer Mobility AG (PMAG), KTM’s parent company. This structure gave Bajaj an effective 37.5% interest in KTM. With the planned acquisition, Bajaj aims to secure direct control.
KTM AG is globally renowned for its high-performance motorcycles, marketed under the KTM, Husqvarna, and GASGAS brands. Upon receiving regulatory clearances, Bajaj Auto plans to overhaul the governance structure of KTM, including a reconstitution of its board. A comprehensive revival strategy is also on the agenda, focusing on enhancing competitiveness, ensuring financial sustainability, and exploring strategic alliances for long-term value creation.
Bajaj sees this transformation as an opportunity to unlock new growth avenues globally, elevate KTM’s brand standing, and strengthen its technological leadership in the performance motorcycle segment. The move underlines Bajaj’s broader ambitions in the global two-wheeler market.
