In a major move that shows just how serious Bajaj Auto is about its long-standing partnership with KTM, the company plans to take control of the Austrian motorcycle brand through its Netherlands-based subsidiary, Bajaj Auto International Holdings BV (BAIHBV). This marks a big shift from being a silent partner to becoming the majority owner—pending regulatory approvals, of course.
Once approved, this would be a game-changer. Bajaj, which already co-develops and manufactures KTM bikes in India (and exports them to over 80 countries), will now be in the driver’s seat of KTM’s global business. It’s a bold step toward expanding their reach in the premium and performance motorcycle segment.
KTM’s Financial Trouble and the Rescue Plan
KTM recently hit a rough patch. Back in November 2024, KTM and two of its subsidiaries entered into a court-supervised restructuring process in Austria. They were struggling with serious cash flow problems, rising debt, and a stalled business. To avoid full-blown insolvency, they needed a solid recovery plan—and fast.
By February 2025, KTM’s creditors approved a restructuring plan. But there was a catch: KTM had to make a one-time payment covering 30% of its debts by May 23, 2025. If they missed the deadline, the company would go into insolvency for good.
That’s where Bajaj stepped in.
€800 Million in Support to Keep KTM Running
To help KTM meet its obligations and get back on track, Bajaj put together a massive €800 million funding package through BAIHBV(Bajaj Auto International Holdings BV). €200 million has already been pumped into the company to keep things afloat during the crisis. The remaining €600 million is being used now to pay off creditors and reboot operations.
This funding wasn’t just a lifeline—it was also a strategic move. With it, Bajaj is ensuring that KTM can survive the restructuring process and start fresh, with Bajaj ready to guide the turnaround.
The Ownership Shuffle
Behind the scenes, there’s a lot of paperwork in motion. Bajaj plans to take over a controlling stake in Pierer Bajaj AG (PBAG), the holding company that controls KTM. Currently, PBAG is jointly owned by Bajaj and the Pierer Group (led by Austrian businessman Stefan Pierer), but Bajaj wants to take full charge.
To make this happen, Bajaj has also taken over a loan commitment of Pierer Group worth €80 million, that was previously at risk of foreclosure. This ensures nothing blocks the planned restructuring or future ramp-up of KTM’s operations.
All of this is still waiting for approvals from Austrian regulators, including their Takeover Commission and Merger Control Authorities. But once cleared, the ownership structure will change, and Bajaj will officially be at the helm. Whether it is 100% or slightly less is to be seen. Knowing Bajaj they will be gunning for 100% stake. Either ways, Bajaj will in the decision making seat.
What’s Next for KTM?
The immediate goal is to get the Austrian court’s final sign-off on KTM’s restructuring plan so the company can exit the self-administration process. After that, production of motorcycles—and related parts and accessories—will begin again after months of being stalled.
Once Bajaj gets the green light, they’ve got big plans:
- Rebuild KTM’s leadership and governance structure
- Kick off a full-scale business revival to get growth back on track
- Expand the joint development program between the two companies
- Explore new collaborations to create long-term value and stay ahead of the competition
The Bigger Picture
By stepping in at a critical time and backing KTM financially and strategically, Bajaj Auto is positioning itself as a key player in shaping the future of high-performance motorcycles worldwide. This isn’t just about rescuing a company—it’s about unlocking global growth, boosting brand value, and pushing the limits of motorcycle innovation.
While Bajaj hasn’t officially revealed what comes next beyond the takeover and restructuring, the possibilities are exciting for motorcycle fans:
Could Bajaj enter MotoGP?
With more control over KTM, Bajaj now has a foot in the door of top-tier racing. KTM already races in MotoGP, and with Bajaj’s ambition and scale, it’s not unthinkable that we might see a more direct Indian footprint in the paddock—maybe even a Bajaj-backed satellite team or stronger engineering collaboration.
Will we see a Super Duke based Pulsar?
Bajaj has a history of trickling down performance tech into affordable packages. Now with deeper access to KTM’s R&D, imagine a future Pulsar NS or Dominar inspired by the Super Duke’s raw aggression or powered by a more advanced engine architecture.
Tech trickle-down across brands
This move could also mean shared platforms and advanced electronics (like cornering ABS, traction control, ride modes) being introduced sooner in Bajaj bikes. Riders could get more KTM DNA in everyday machines—without the premium price tag.
Global stage, local strength
Expect Bajaj to take a more aggressive stance in global markets, with KTM’s performance appeal paired with Bajaj’s cost-effective manufacturing and supply chain. That’s a combo that could rival Japanese and European giants in markets where value matters.
