Bajaj Auto Secures Majority Stake in KTM with €800 Million Rescue Plan

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Bajaj Auto is set to acquire a controlling stake in Austrian motorcycle giant KTM AG by injecting €800 million (approx. ₹7,200 crore) into the company. The move comes as KTM’s parent company, Pierer Mobility AG, faces a severe liquidity crunch and filed for restructuring late last year. Bajaj, which already holds a 48% indirect stake through its Netherlands-based subsidiary, will become the majority stakeholder following this deal.

The rescue package strengthens Bajaj Auto’s ambition to lead in the global premium motorcycle market while offering a lifeline to one of Europe’s best-known performance bike manufacturers.

Financial Details of the Rescue Package

The €800 million funding comprises a €450 million secured loan and €150 million in convertible bonds, with the remaining €200 million expected to come from a rights issue and working capital support. The deal allows Bajaj to not only stabilize KTM’s operations but also gain substantial influence over its strategic direction. This move will help Pierer Mobility settle its creditor obligations and restructure its operations in Austria and other global markets.

Bajaj’s majority control is subject to regulatory approvals in Europe, but once finalized, it would mark a significant global footprint expansion for the Indian automaker.

Why This Move Matters for Bajaj and the Motorcycle Industry

This acquisition is part of a larger trend where Indian automotive players are increasingly eyeing global expansion.

KTM, a leading name in performance bikes, sells over 2 lakh units annually and operates across 80+ countries. With demand rising in the mid- and premium motorcycle segments globally, especially in Asia and Europe, this acquisition positions Bajaj to tap into new markets and improve technology access.

Moreover, it reflects Bajaj’s strategy to evolve from a domestic two-wheeler leader into a global mobility powerhouse.

With this €800 million rescue and acquisition plan, Bajaj Auto is set to become a dominant force in the global premium motorcycle segment. The acquisition of majority control in KTM not only safeguards the future of the Austrian brand but also aligns with Bajaj’s long-term vision of expanding its international footprint.

As competition intensifies in the two-wheeler space, this strategic move will likely set new benchmarks in global automotive partnerships.