Bajaj Auto is set to acquire a controlling stake in Austrian motorcycle manufacturer KTM AG, marking a pivotal shift from minority investor to majority owner. The acquisition, valued at €800 million (approximately ₹7,765 crore), will be executed through Bajaj Auto International Holdings BV (BAIHBV), the company’s wholly owned Netherlands-based subsidiary.
This strategic move comes as KTM AG undergoes a court-approved debt restructuring following liquidity challenges that began in late 2024. The €800 million funding package includes a €450 million secured term loan to KTM AG and €150 million in convertible bonds issued by Pierer Bajaj AG (PBAG), with €200 million already infused as shareholder debt. The funds are intended to meet a court-imposed deadline of May 23, 2025, requiring 30% of creditor claims to be settled to avoid insolvency proceedings for KTM and its subsidiaries.
Bajaj Auto currently holds an indirect 37.5% stake in KTM through a layered ownership structure involving PBAG and Pierer Mobility AG, the holding company for KTM, Husqvarna, and Gasgas brands. With this acquisition, Bajaj will transition to majority control, pending regulatory approvals from Austrian authorities, including the Takeover Commission and Foreign Investment Control.
The deal will also see Bajaj acquire a controlling interest in PBAG, the parent company of Pierer Mobility AG. Upon completion, Bajaj plans to revamp KTM’s governance, restore growth momentum, and explore further global partnerships, particularly leveraging joint development programs in India, where KTM bikes are developed, manufactured, and exported to over 80 countries.
Bajaj Auto stated that this acquisition is designed to stabilize KTM’s finances, ensure operational continuity, and expand Bajaj’s global reach in the high-performance motorcycle segment. The company emphasized that this marks a significant milestone in its international strategy and positions Bajaj as a driving force in shaping the future of one of the world’s most admired motorcycle brands.
