KATHMANDU: Indian two-wheeler giant Bajaj Auto is set to take control of Austrian motorcycle company KTM AG in a move aimed at reviving the financially troubled company.
The $906 million investment will transition Bajaj from a minority stakeholder to a strategic leader in KTM’s operations. The investment will be made through Bajaj Auto’s subsidiary Bajaj Auto International Holdings BV and includes a combination of loans and bonds intended to help KTM overcome its liquidity crisis.
Bajaj previously held a 37.5% indirect stake in KTM. With this new capital infusion, it plans to acquire a majority stake in Pierer Bajaj AG, the joint venture that owns 75% of KTM’s parent company, Pierer Mobility AG. Once regulatory approvals are secured, Bajaj will get a controlling interest in the Austrian brand.
KTM entered court-supervised restructuring in November 2024 after struggling with liquidity issues. As part of its recovery plan, the company must repay 30% of its debts to avoid insolvency. Bajaj’s investment will help settle those debts and restart KTM’s operations.
The $906 million investment will transition Bajaj from a minority stakeholder to a strategic leader in KTM’s operations.
KTM, which sells bikes in nearly 80 countries, is renowned for its high-performance motorcycles, including the 390 Duke, 890 Duke R, 1290 Super Duke R and the Adventure series. In India, KTM’s models are co-developed and manufactured by Bajaj Auto, focusing on affordable performance options like the 200 Duke, 250 Duke, 390 Duke, RC 200/390 and Adventure 250/390.
Bajaj Auto is one of the largest two-wheeler brands in India, exporting products to over 70 countries across Asia, Africa, Latin America and Europe. The company also operates assembly plants in Nigeria, Egypt and Nepal.
