Bajaj Auto to take full control of KTM amid restructuring drive

With this move, Bajaj will transition from being a significant minority investor to the majority owner of KTM, a global leader in premium off-road and street motorcycles

Pune: Bajaj Auto Ltd is set to acquire a controlling stake in Austria-based KTM, marking a pivotal shift in its long-standing partnership with the iconic European motorcycle brand. The acquisition will be carried out through Bajaj’s Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV), subject to regulatory approvals.

With this move, Bajaj will transition from being a significant minority investor to the majority owner of KTM, a global leader in premium off-road and street motorcycles. The acquisition comes as KTM AG navigates a court-approved debt restructuring following a liquidity crisis that began in late 2024.

To support KTM’s revival, BAIHBV has committed a €800 million debt funding package, of which €200 million has already been infused. The remaining €600 million will be deployed to settle creditor obligations and restart operations. Bajaj aims to use the restructuring privilege under Austrian takeover laws to facilitate the change in control.

This strategic shift also includes a planned overhaul of KTM’s governance and operations. Production of bikes and components is expected to resume post-court approvals, with Bajaj outlining plans to revamp KTM’s board, restore growth momentum, and explore global partnerships.

Prior to the acquisition, Bajaj effectively held a 37.5% stake in KTM through a layered ownership structure. The latest move positions Bajaj not only as a financial rescuer but also as the key architect of KTM’s future.

This marks a significant expansion of Bajaj Auto’s global footprint in the high-performance motorcycle segment.