Bajaj Auto takes charge of rebuilding KTM

In a decisive move that reflects its long-term vision and partnership strategy, Bajaj Auto Limited has announced its intent to take over majority control of the iconic Austrian motorcycle brand KTM. This plan, being routed through its fully owned subsidiary Bajaj Auto International Holdings BV (BAIHBV), is pending necessary regulatory clearances.

KTM, known for its dominance in the premium and sports bike segments, has been a longstanding partner of Bajaj. The acquisition signals Bajaj’s growing ambition in the high-performance motorcycle space and its confidence in KTM’s global appeal.

From Silent Partner to Strategic Leader

Historically, Bajaj has been a minority investor in KTM, playing a relatively quiet role in the brand’s global strategy. However, with this planned acquisition, the Indian auto major is set to move from the sidelines to the driver’s seat. The move will position Bajaj as the majority shareholder in KTM, transforming its influence from passive investor to active leader.

Bajaj has already played a pivotal role in KTM’s growth through a joint development program based in India. This collaboration has resulted in successful local manufacturing, domestic sales, and exports to more than 80 international markets. The acquisition is expected to further fuel KTM’s growth trajectory under Bajaj’s leadership.

€800 Million Lifeline for KTM’s Revival

In tandem with the ownership shift, BAIHBV has secured a significant €800 million debt funding package to support KTM’s ongoing financial restructuring. This capital infusion is intended to pay off approved dues as part of a court-sanctioned plan in Austria and to revive the company’s operations and liquidity cycle.

Out of the total amount, €200 million has already been injected into KTM, with the remaining €600 million now being disbursed. The funding will provide KTM with the necessary financial stability to continue operations and invest in future growth.

A New Chapter in Global Motorcycling

As Bajaj Auto moves to take control of KTM, the company sets the stage for a new era of innovation and expansion. The move underlines Bajaj’s commitment to becoming a formidable force in the global premium motorcycle market.

A Bold Step into the Future

In a decisive move set to reshape the global high-performance motorcycle market, Bajaj Auto Limited has unveiled a comprehensive plan to assume controlling ownership of KTM, the renowned Austrian motorcycle company. This strategy, routed through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV), combines equity acquisition and a substantial debt package aimed at reviving the financially strained KTM business.

From Stakeholder to Strategic Leader

Until now, Bajaj held an indirect 37.5% stake in KTM via a complex structure involving multiple entities—most notably Pierer Bajaj AG (PBAG) and Pierer Mobility AG (PMAG). With the proposed acquisition of majority control in PBAG, Bajaj is poised to transition from a silent partner to a key decision-maker in KTM’s future. This change will only take effect once all necessary regulatory approvals in Austria are secured.

Financial Lifeline to Revive KTM

To address KTM’s liquidity crunch, Bajaj has committed to an €800 million funding package. This includes €200 million already infused through convertible bonds and loans across FY24 and early 2025 to sustain operations during KTM’s self-administered restructuring.

A further €600 million is now being deployed—€450 million as a secured term loan and €150 million via convertible bonds. These funds, paid into escrow under the supervision of Austrian legal authorities, will settle creditor dues and finance the restart of KTM’s production lines.

Strategic Interventions Underway

Bajaj has also taken over a €80 million loan obligation involving Pierer Group to prevent foreclosure risks that could have derailed the restructuring process. Once the court grants binding restructuring orders, Bajaj will initiate a governance overhaul, reconstitute KTM’s board, and drive a comprehensive turnaround plan.

Revving Up for a Global Push

Post-approval, Bajaj aims to deepen its joint development program, revive production, and expand globally by exploring synergistic partnerships. This strategic integration positions

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