Bajaj Auto Set to Lead KTM’s Revival with Strategic Takeover and €800M Infusion
In a bold strategic move, Bajaj Auto Ltd. is set to take control of Austrian motorcycle giant KTM through its wholly owned subsidiary, Bajaj Auto International Holdings BV (BAIHBV). This decision reflects Bajaj’s long-standing commitment to partnership with KTM and its vision to grow in the premium/sports motorcycle space. The takeover is subject to necessary regulatory approvals.
From Minority Stakeholder to Majority Owner
Currently holding an indirect ~37.5% stake in KTM, Bajaj will transition from a passive investor to a majority owner, strengthening its role in KTM’s global operations. This includes the successful joint development program in India, which designs, manufactures, and exports KTM motorcycles to over 80 countries.
€800 Million Funding to Drive Turnaround
To support KTM’s debt restructuring and revival, BAIHBV has structured a comprehensive €800 million funding package:
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€200 million already infused across FY24 and early FY25 via convertible bonds/loans to maintain business continuity.
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€600 million to be deployed, including:
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€450 million secured term loan to KTM AG.
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€150 million convertible bonds by PBAG (Pierer Bajaj AG), further loaned to fund operations and creditor obligations.
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This financial backing ensures KTM meets its obligations under a court-approved restructuring plan in Austria and resumes production.
Revamping Ownership and Governance
Bajaj Auto also plans to acquire full control of PBAG, KTM’s immediate holding company, replacing Pierer Industrie AG as the controlling shareholder. Bajaj has taken over a €80 million commitment from Dabepo Holding GmbH to safeguard KTM’s restructuring path. The ownership shift will be finalized post-regulatory approvals under the Austrian Takeover Act for distressed assets.
The Road Ahead
Pending final approvals from Austrian authorities, Bajaj is poised to:
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Rebuild KTM’s board and governance.
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Launch a comprehensive business turnaround plan.
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Expand the joint development program.
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Explore strategic global partnerships.
This decisive move positions Bajaj Auto as the driving force behind KTM’s next chapter — unlocking global growth, brand elevation, and innovation leadership in the high-performance motorcycle world.
Also Read: KTM Unleashes the All-New 390 ENDURO R in India
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