Bajaj Auto, through its Netherlands-based subsidiary Bajaj Auto International Holdings BV (BAIHBV), is set to acquire complete ownership of Austrian motorcycle brand KTM. The Indian automotive major has secured a substantial €800 million (approximately Rs 7,762 crore) in debt funding to facilitate the acquisition and rescue KTM from looming bankruptcy. Bajaj already holds a 37.5% stake in KTM and has invested an additional €200 million (around Rs 1,940 crore) in recent months, signaling a committed push toward full ownership.
The financial rescue and takeover strategy is subject to several critical approvals from Austrian authorities. These include regulatory clearance from the Austrian Takeover Commission, Foreign Investment Control, and Merger Control Authorities. Additionally, the Austrian Court must issue final restructuring orders before Bajaj can assume full operational control. Pending these approvals, KTM will continue operating under its existing corporate structure.
The €800 million loan raised by BAIHBV is earmarked for two key purposes: clearing KTM's outstanding debts and injecting fresh capital for day-to-day operations. The rescue effort comes at a time when KTM has been grappling with production halts and financial instability. Bajaj Auto aims to restructure the company comprehensively and stabilize its core manufacturing and supply chain operations.
Once approvals are secured and debt obligations are settled, Bajaj Auto plans to restart KTM’s motorcycle production facilities. The revival strategy will also include restoring the supply of spare parts and accessories to KTM dealers worldwide. The aim is to gradually resume normal operations and rebuild the trust of KTM’s customer and dealer base. The process will include a phased approach to distribution and after-sales services.
As part of the takeover, Bajaj Auto is expected to make significant changes to KTM’s leadership team. New board members from Bajaj may join KTM's executive structure, bringing in their expertise to streamline operations and drive innovation. This restructuring is geared toward revitalizing KTM’s brand positioning in the global premium motorcycle market.
Bajaj Auto aims to leverage its strong financial backing and global supply chain expertise to re-establish KTM as a leading brand in the high-performance motorcycle space. With a focus on premium products, Bajaj plans to enhance KTM’s design, manufacturing, and global marketing efforts. The takeover is viewed as a pivotal step to turning around KTM’s fortunes and aligning its future with Bajaj’s strategic objectives.
While Bajaj focuses on reviving KTM’s commercial operations, the future of its motorsport division remains unclear. KTM has long been associated with motorsport excellence, particularly in MotoGP and the Dakar Rally. However, no official confirmation has been made regarding the continuation of these racing programs under Bajaj’s stewardship. As KTM undergoes financial restructuring, motorsport enthusiasts and stakeholders are keenly observing the outcome.
Conclusion: A Strategic Turning Point
Bajaj Auto’s acquisition of KTM marks a major turning point in the global two-wheeler industry. If successful, the deal will not only rescue KTM from financial distress but also position Bajaj as a dominant player in the global premium motorcycle segment. By combining operational synergies, financial strength, and global reach, Bajaj is aiming to write a new chapter in KTM’s storied legacy.