Bajaj Auto to acquire majority stake in KTM with €800 million revival package
The deal, subject to regulatory clearances, will see Bajaj Auto shift from a dormant minority stakeholder to the majority owner of KTM through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV.
In a major move to expand its footprint in the global premium motorcycle segment, Bajaj Auto Ltd announced plans on May 22 to acquire a controlling stake in Austrian motorcycle maker KTM AG. The deal, subject to regulatory clearances, will see Bajaj shift from a dormant minority stakeholder to the majority owner of KTM through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV).
Bajaj, one of India's leading two-wheeler makers, has outlined a comprehensive €800 million ($903.75 million) funding package to support KTM’s financial restructuring and revival. The funding includes €600 million ($677.82 million) in fresh capital being deployed now, in addition to €200 million ($225.91 million) already infused earlier to address KTM’s urgent liquidity needs.
Rescuing a storied brand
KTM AG, known for high-performance motorcycle brands such as KTM, Husqvarna, and GASGAS, filed for judicial restructuring in November 2024 due to spiralling debt and operational bottlenecks.
On February 25, 2025, its creditors approved a restructuring plan that proposed a one-time payout of 30 per cent of their claims by May 23. Bajaj’s financial support is crucial for meeting this deadline and reviving the company’s stalled operations.
The €800 million ($903.75 million) package includes a €450 million ($508.30 million) secured term loan to KTM and €150 million ($169.41 million) in convertible bonds issued by Pierer Bajaj AG (PBAG)—a joint venture between Bajaj and Austrian entrepreneur Stefan Pierer.
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Bajaj’s BAIHBV currently holds a 49.9 per cent stake in PBAG, which owns 75 per cent of KTM’s listed parent entity, Pierer Mobility AG (PMAG). The deal will enable Bajaj to acquire full control of PBAG, thereby gaining indirect control over KTM.
Additionally, BAIHBV has assumed a commitment worth €80 million from Dabepo Holding GmbH to prevent loan foreclosure that could jeopardise KTM’s revival plans.
Strategic shift for Bajaj Auto
“This twin move of taking ownership (subject to approvals) and paring down debt by providing liquidity at a crucial stage positions Bajaj Auto as a driving force in shaping the future of one of the world’s most admired high-performance motorcycle companies,” the company said in a statement.
Bajaj’s involvement with KTM dates back to 2007. Over the years, the partnership has expanded to include joint development, manufacturing, and export of KTM motorcycles from India to over 80 countries. Bajaj Auto currently holds an effective 37.5 per cent stake in KTM via PMAG.
Post-deal, Bajaj aims to resume production at KTM’s Austrian facilities after months of stoppage and enhance operations through its established India-based development programmes. Long-time KTM CEO Stefan Pierer is expected to step down as part of the transition.
The deal not only marks a significant governance shift but also positions Bajaj Auto to leverage KTM’s global brand equity for wider opportunities in technology innovation and international market expansion.
The court is expected to confirm KTM’s restructuring plan by mid-June, following which the creditor payments will be released and legal proceedings concluded. In parallel, Bajaj is seeking approvals from Austria’s Takeover Commission, Foreign Investment Control, and Merger Control Authorities.
(With inputs from agencies)