Quick Overview
- Bajaj set to become majority owner of KTM globally, shifting from minority investor
- €800 million debt funding arranged to rescue KTM from insolvency
- Production restart and brand revival expected after court approvals
Bajaj Steps In to Rebuild KTM
Bajaj Auto has announced a decisive move to take control of KTM’s global operations through its wholly owned Dutch subsidiary, Bajaj Auto International Holdings BV (BAIHBV). The takeover comes amid KTM AG’s financial crisis and self-administration process in Austria. The move, subject to regulatory approval, aims to transition Bajaj from a dormant investor to the majority owner, steering the Austrian motorcycle brand through its next chapter.
€800 Million Funding Package
Bajaj has arranged a massive €800 million debt package to cover KTM’s creditor obligations and revive its operations. This includes €200 million already infused over the past few months and a fresh €600 million now lined up. The funds are earmarked for settling creditor quotas and restarting production, parts supply, and business operations.
The KTM Financial Crisis Explained
KTM AG, along with KTM Components GmbH and KTM F&E GmbH, filed for restructuring in November 2024 after severe liquidity issues. A restructuring plan approved by creditors in February 2025 required a 30% cash payout of claims by May 23, 2025. Bajaj’s intervention comes just in time to avoid KTM slipping into insolvency proceedings, ensuring continuity in the restructuring timeline.
What This Means for Bajaj
Through this transaction, Bajaj will effectively control the Pierer Bajaj AG (PBAG), which in turn holds a major stake in Pierer Mobility AG—KTM’s parent company. With KTM operations already integrated in India through product development and manufacturing, this shift enables Bajaj to expand its influence across both backend R&D and global markets.
Next Steps
The restructuring plan must receive final confirmation from Austrian courts post the creditor payout. Bajaj will then revamp KTM’s governance, reconstitute the board, and realign the brand’s growth strategy. The move could lead to a broader front-end transformation and potential new partnerships for both KTM and Bajaj globally.
Final Thoughts
From a garage in Chakan to taking charge of one of Europe’s most iconic motorcycle brands—this feels less like corporate chess and more like a full-throttle wheelie through the boardroom. If KTM’s orange spark dims, Bajaj just lit a bonfire under it.