News, 23 May 2025
Bajaj Auto intends to assume control of KTM AG through an €800 million ($906.2 million) debt arrangement for the financially challenged Austrian motorcycle manufacturer, according to a statement released on Thursday. Bajaj, will become a strategic leader in KTM after previously being a passive minority stakeholder since 2007.
KTM AG, which designs and markets motorcycles under the KTM and Husqvarna brands to roughly 80 countries, initiated court restructuring procedures in November due to serious liquidity problems. Creditors are expected to receive 30% of their claims in cash by May 23.
To aid in the restructuring process, Bajaj Auto has previously invested €200 million into KTM and plans to add another €600 million to settle outstanding debts and revitalize the company. Bajaj will gain a controlling interest in its Pierer Bajaj AG division and, by extension, KTM’s parent company, Pierer Mobility AG. KTM and Bajaj collaborate on product development in India.
Bajaj Auto currently owns 37.5% of the KTM business through its division. The extent to which its stake will increase following the transaction was not immediately specified.
About Bajaj Auto
Bajaj Auto is an Indian multinational automotive manufacturing company. It was founded in 1945 by Jamnalal Bajaj in Rajasthan. It is renowned for its motorcycles, scooters, and auto rickshaws. Bajaj Auto is the world’s third-largest motorcycle manufacturer and one of India’s most valuable companies.
