In a major move that has caught the attention of the global automobile industry, Bajaj Auto has announced that it will acquire a controlling stake in the famous Austrian motorcycle brand, KTM. This deal is valued at €800 million, which is around ₹7,765 crore in Indian currency. With this acquisition, Bajaj Auto is set to become the majority owner of KTM, marking a big step forward in its global expansion plans.
The History Between Bajaj and KTM
Bajaj Auto has been associated with KTM for over 16 years. In 2007, Bajaj acquired a small stake in the Austrian brand. Over the years, this partnership grew stronger, and KTM motorcycles became popular in India, thanks to Bajaj’s manufacturing and distribution network. Models like the KTM Duke and RC series are now common sights on Indian roads, especially among young bikers.
Until now, Bajaj Auto owned about 48% in Pierer Mobility AG through its subsidiary, which indirectly gave it a 37.5% stake in KTM AG. With the new deal, Bajaj will take direct control of KTM, becoming the largest stakeholder.
Why KTM Needed Help
KTM AG has been facing financial trouble for some time. In late 2024, the company went into a court-monitored self-administration process due to liquidity issues. A key requirement to continue operations was to pay off 30% of outstanding creditor claims by May 23, 2025. Failing to do this would have pushed KTM into full insolvency.
Bajaj Auto stepped in at the right time. Its financial support ensures that KTM meets this deadline and avoids bankruptcy. The €800 million will be used to repay debts and fund future operations.
Breakdown of the Deal
Bajaj Auto is investing in three parts:
- €450 million as a secured term loan to KTM AG.
- €150 million by buying convertible bonds in the holding company, Pierer Bajaj AG.
- €200 million as shareholder debt, which Bajaj had already invested earlier.
This combined investment not only saves KTM but also gives Bajaj Auto controlling rights in the company.
What This Means for Bajaj and India
This move puts Bajaj Auto in a powerful position in the global two-wheeler market. KTM is known for its premium performance motorcycles, and now Bajaj will have direct influence over its strategies, product planning, and global growth.
For India, this is a proud moment. An Indian company will now control one of Europe’s most respected motorcycle brands. It also means that more advanced KTM and possibly even Husqvarna bikes could be developed and manufactured in India, making them more affordable for Indian customers.
Future Possibilities
With Bajaj now leading KTM, we might see more innovation, electric models, and expanded global reach. Bajaj’s manufacturing strength combined with KTM’s racing heritage could result in a new generation of motorcycles that appeal to both domestic and international markets.
This acquisition also strengthens India’s position as a key player in the global auto industry, especially in the two-wheeler segment.
